Gold Price Forecast: XAU/USD displays topsy-turvy moves post hawkish Fed, US PMI in focus

  • Gold price has turned sideways after a wild gyration, awaiting a fresh trigger for a decisive break.
  • Higher interest rates are forcing corporate to postpone their expansion plans.
  • The DXY is aiming to recapture the fresh two-decade high around 111.80.

Gold price (XAU/USD) is bewildered after gyrating in a wider range post the announcement of the monetary policy by the Federal Reserve (Fed). The precious metal bounced sharply after testing a two-year low at $1,654.50. However, the upside seems capped at around $1,685.00, which has shifted the yellow metal back inside the woods.

Federal Reserve (Fed)’s agenda of cooling down the ultra-hot inflation is hurting the corporate at most. Higher obligations on borrowings are forcing them to postpone their current expansion plans and drop investment in fruitful opportunities. This is resulting in a sheer decline in the growth projections and eventually in employment generation. Also, the housing sector is becoming a major victim as higher interest rates are resulting in higher monthly installments, which are forcing them to postpone their home-purchase plans.

Meanwhile, the US dollar index (DXY) is aiming to recapture the two-decade high of 111.81 ahead of S&P Global PMI data. As per the preliminary estimates, the Manufacturing PMI will land lower at 51.1 vs. the prior release of 51.5. While the Services PMI will improve to 45.0 against the prior print of 43.7.

Gold technical analysis

Gold price is displaying topsy-turvy moves in a wider range of $1,654.00-1,690.50 on an hourly scale. The 21-period Exponential Moving Average (EMA) at $1.670.00 is overlapping with the asset price, which signals a consolidation ahead.

Also, the Relative Strength Index (RSI) (14) is oscillating into the 40.00-60.00 range, which seeks a further trigger for a decisive move.

Gold hourly chart


Today last price 1671.06
Today Daily Change -2.88
Today Daily Change % -0.17
Today daily open 1673.94
Daily SMA20 1705.74
Daily SMA50 1733.64
Daily SMA100 1779.52
Daily SMA200 1829.69
Previous Daily High 1688.11
Previous Daily Low 1653.97
Previous Weekly High 1735.17
Previous Weekly Low 1654.17
Previous Monthly High 1807.93
Previous Monthly Low 1709.68
Daily Fibonacci 38.2% 1675.07
Daily Fibonacci 61.8% 1667.01
Daily Pivot Point S1 1655.9
Daily Pivot Point S2 1637.87
Daily Pivot Point S3 1621.76
Daily Pivot Point R1 1690.04
Daily Pivot Point R2 1706.15
Daily Pivot Point R3 1724.18





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