Gold Price Forecast: XAU/USD extends its downside below $1,950 ahead of US PMI, Fed’s Powell speech

Gold price loses traction below the $1,850 mark as the US Dollar (USD) resumes its upward path.
The annual Core PCE Price Index grew 3.9% vs. 4.3% prior.
The US passed bills to prevent a government shutdown following Friday's session.
Traders will focus on the US ISM Manufacturing PMI, the Fed Chair Powell’s speech.

Lallalit Srijandorn FXStreet

Gold price (XAU/USD) extends its downside and trades in negative territory for the sixth consecutive day during the early Asian trading hours on Monday. The renewed US Dollar (USD) demand exerts some selling pressure on USD-denominated Gold price. The precious metal currently trades near $1,846, losing 0.12% on the day. Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, holds above 106.25 after retracing the low of 105.65 on Friday.

The US Bureau of Economic Analysis reported on Friday that the Personal Consumption Expenditures (PCE) Price Index climbed 3.5% YoY in August from 3.4% in July, meeting market expectations. The annual Core PCE Price Index, the Federal Reserve's preferred inflation indicator, grew 3.9% from 4.3% in July, in line with the estimation. On a monthly basis, the PCE Price Index and the Core PCE Price Index rose 0.4% and 0.1% MoM, respectively. Both of these figures came in below the market expectations.

On the weekend, China’s manufacturing activity grew into positive territory. The Chinese Caixin/S&P Global Manufacturing Purchasing Managers' Index (PMI) dropped to 50.6 in September from the previous reading of 51.0, below the market consensus of 51.2. However, this figure failed to boost gold price.

Furthermore, the US passed bills to prevent a government shutdown following Friday's session, extending funding until November 17. This, in turn, lifts the US Dollar and drags XAU/USD lower.

Gold traders will monitor the US ISM Manufacturing PMI for September due on Monday. Also, Fed Chair Powell’s speech could offer hints about potential interest rate hikes. Traders will take cues from these events and find trading opportunities around the gold price.

XAU/USD

Overview
Today last price	1846.74
Today Daily Change	-1.80
Today Daily Change %	-0.10
Today daily open	1848.54

Trends
Daily SMA20	1912.2
Daily SMA50	1921.29
Daily SMA100	1935.2
Daily SMA200	1927.58

Levels
Previous Daily High	1879.88
Previous Daily Low	1846.37
Previous Weekly High	1927.27
Previous Weekly Low	1846.37
Previous Monthly High	1953.01
Previous Monthly Low	1846.37
Daily Fibonacci 38.2%	1859.17
Daily Fibonacci 61.8%	1867.08
Daily Pivot Point S1	1836.65
Daily Pivot Point S2	1824.75
Daily Pivot Point S3	1803.14
Daily Pivot Point R1	1870.16
Daily Pivot Point R2	1891.77
Daily Pivot Point R3	1903.67

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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