Gold Price Forecast: XAU/USD extends recovery above $1,910 after US Core PCE


  • The US dollar weakened following consumer inflation data.
  • DXY drops 0.4%, retreating from two-week highs. 
  • XAU/USD reached its highest level in three days.

Gold prices are having their best day in weeks on Friday, boosted by a decline in the US dollar across the board. XAU/USD jumped from near $1,905 to $1,920 following the release of the US Core Personal Consumption Expenditure Price Index.

The consumption inflation figures showed a decline slightly higher than expected and triggered a retreat in US yields and boosted equity and commodity prices. The US Core PCE fell in May to 4.6% on an annual basis from 4.7%, while the headline dropped from 4.6% to 3.8%.

These figures softened Federal Reserve rate hike expectations for the next meeting. The focus now turns to next week's US labor market data, which includes the ADP, Jobless Claims (Thursday), and the Nonfarm Payrolls report (Friday).

XAU/USD rebounding

XAU/USD is hovering around $1,915, up less than $10 but enough to make it the best day in weeks. The recovery took place after reaching a low on Thursday at $1,892, the lowest level in three months.

On the upside, XAU/USD is breaking a short-term downtrend line. The next resistance area is $1,920. On the downside, a decline below $1,905 would weaken the short-term outlook for the yellow metal.

Technical levels 

XAU/USD

Overview
Today last price 1916.49
Today Daily Change 8.29
Today Daily Change % 0.43
Today daily open 1908.2
 
Trends
Daily SMA20 1940.32
Daily SMA50 1970.36
Daily SMA100 1943.91
Daily SMA200 1858.19
 
Levels
Previous Daily High 1913.17
Previous Daily Low 1893.01
Previous Weekly High 1958.85
Previous Weekly Low 1910.18
Previous Monthly High 2079.76
Previous Monthly Low 1932.12
Daily Fibonacci 38.2% 1905.47
Daily Fibonacci 61.8% 1900.71
Daily Pivot Point S1 1896.42
Daily Pivot Point S2 1884.63
Daily Pivot Point S3 1876.26
Daily Pivot Point R1 1916.58
Daily Pivot Point R2 1924.95
Daily Pivot Point R3 1936.74

 

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD clings to recovery gains near 1.0650

EUR/USD clings to recovery gains near 1.0650

EUR/USD trades in positive territory near 1.0650 on Wednesday. The US Dollar sees a modest retreat, helping the pair recover previous losses. The EUR/USD rebound, however, appears limited amid Fed-ECB policy divergence. ECB and Fed speeches eyed. 

EUR/USD News

GBP/USD holds above 1.2450 after UK inflation data

GBP/USD holds above 1.2450 after UK inflation data

GBP/USD is holding onto the latest upside above 1.2450 in the European session on Wednesday. The UK's ONS reported that the annual inflation edged lower to 3.2% in March. This reading beat the market expectation of 3.1% and helped Pound Sterling stay afloat.

GBP/USD News

Gold fluctuates near $2,390 as markets keep an eye on geopolitics

Gold fluctuates near $2,390 as markets keep an eye on geopolitics

Gold trades in a relatively tight range near $2,390 in the second half of the day on Wednesday. In the absence of high-tier data releases, investors keep a close eye on headlines surrounding Iran-Israel conflict.

Gold News

XRP tests $0.50 resistance after Ripple CLO clarifies that no pretrial conference took place with SEC

XRP tests $0.50 resistance after Ripple CLO clarifies that no pretrial conference took place with SEC

XRP is stuck below $0.50 resistance after failing to close above this level since Monday. Ripple CLO Stuart Alderoty said late Tuesday there was no pretrial conference since the SEC dropped charges against executives. 

Read more

World economy: To cut or not to cut (simultaneously)?

World economy: To cut or not to cut (simultaneously)?

US inflation March figure, again higher than expected, put an end to the scenario of a simultaneous first rate cut by the Fed, the ECB, and the BoE in June. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures