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

XAU/USD

Overview
Today last price 1671.06
Today Daily Change -2.88
Today Daily Change % -0.17
Today daily open 1673.94
 
Trends
Daily SMA20 1705.74
Daily SMA50 1733.64
Daily SMA100 1779.52
Daily SMA200 1829.69
 
Levels
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

 

 

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD struggling around 0.6400 and at risk of piercing the year’s low

AUD/USD struggling around 0.6400 and at risk of piercing the year’s low

Disappointing Australian data and a deteriorated market mood weighed on AUD/USD, quickly approaching the 2022 low at 0.6362. RBA’s Financial Stability report coming up next.

AUD/USD News

EUR/USD extends decline sub-0.9800 as risk aversion intensifies

EUR/USD extends decline sub-0.9800 as risk aversion intensifies

The American dollar maintains a strong upward momentum amid renewed inflation and recession concerns. EUR/USD further retreated after failing to regain parity mid-week.

EUR/USD News

Gold struggling to retain its bullish strength

Gold struggling to retain its bullish strength

XAUUSD shed some ground on Thursday, currently hovering around $1,713.00. The dollar has gathered momentum as Wall Street opened in the red, holding into negative territory at the time. Also, government bond yields resumed their advances and hold near fresh weekly highs.

Gold News

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: The next move could surprise us all

The crypto market displays mixed signals but hints that the bearish trend is not over yet. Adopting a get-in-get-out mentality may be the more favorable approach for investors looking to expose themselves to the market.

Read more

US September NFP Preview: Analyzing gold's reaction to NFP surprises Premium

US September NFP Preview: Analyzing gold's reaction to NFP surprises

Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAUUSD pair's reaction to the previous 26 NFP prints.

Read more

Forex MAJORS

Cryptocurrencies

Signatures