Gold Price Forecast: XAU/USD fades bounce off $1,640 support amid hawkish Fedspeak


  • Gold price remains sidelined after rising for the last two consecutive days.
  • US Treasury yields remain indecisive at multi-month high amid light calendar.
  • Risk appetite remains firmer despite hawkish Fedspeak but XAU/USD buyers fear amid DXY’s hesitant fall.

Gold price (XAU/USD) treads water around the mid-$1,600s while struggling to extend the previous gains during Wednesday’s Asian session. In doing so, the bullion traces the market’s inaction amid a lack of major data/events. Even so, the risk-on mood keeps the buyers hopeful ahead of the inflation data from Eurozone, the UK and Canada.

That said, headlines suggesting the Russian military’s hardships in Ukraine and the UK Chancellor’s U-turn on previous fiscal plans join sluggish Treasury yields to keep the market sentiment positive. Alternatively, hawkish Fedspeak and upbeat US data challenge the risk profile and the XAU/USD buyers.

“Until I see some compelling evidence that core inflation has at least peaked, not ready to declare a pause in rate hikes,” said Minneapolis Federal Reserve Bank President Neel Kashkari on Tuesday per Reuters. Elsewhere, the US Industrial Production for September rose to 0.4% versus the 0.1% expected while the softer NAHB Housing Market Index for October eased to 38 from 43 market consensus.

While portraying the mood, S&P 500 Futures trace Wall Street’s gains whereas the US 10-year Treasury yields remain sidelined.

Looking forward, the XAU/USD buyers need to have softer prints of the upcoming inflation numbers and additional positives for Ukraine, as well as the UK, to keep the reins.

Technical analysis

Although the gold price struggles to extend the recovery from a three-week-old horizontal support area near $1,640, the metal defends the previous day’s upside break of a fortnight-long descending resistance line, now support around $1,647.

That said, the bearish MACD signals and sluggish RSI, as well as the XAU/USD’s sustained trading below the 21 and 50-DMA, respectively around $1,669 and $1,703, keeps the sellers hopeful.

Hence, the bullion is on the bear’s radar but a clear downside break of $1,640 appears necessary to renew the fall toward the yearly low of $1,615.

It should be noted, however, that a clear upside break of the 50-DMA hurdle surrounding $1,703 will propel the quote toward the monthly high near $1,730.

Gold: Daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price 1652.44
Today Daily Change 0.24
Today Daily Change % 0.01%
Today daily open 1652.2
 
Trends
Daily SMA20 1669.72
Daily SMA50 1705.58
Daily SMA100 1746.18
Daily SMA200 1817.02
 
Levels
Previous Daily High 1660.94
Previous Daily Low 1645.93
Previous Weekly High 1699.96
Previous Weekly Low 1640.23
Previous Monthly High 1735.17
Previous Monthly Low 1614.85
Daily Fibonacci 38.2% 1655.21
Daily Fibonacci 61.8% 1651.66
Daily Pivot Point S1 1645.11
Daily Pivot Point S2 1638.01
Daily Pivot Point S3 1630.1
Daily Pivot Point R1 1660.12
Daily Pivot Point R2 1668.03
Daily Pivot Point R3 1675.13

 

 

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 consolidates near 1.1350 amid a quiet start to a Big week

EUR/USD consolidates near 1.1350 amid a quiet start to a Big week

EUR/USD keeps its range play intact near 1.1350 in Monday’s European session. The upbeat market mood and easing US Dollar demand fail to provide lift to the main currency pair amid a quiet start to a critical week ahead. 

EUR/USD News
GBP/USD recaptures 1.3300 as US Dollar buying stalls

GBP/USD recaptures 1.3300 as US Dollar buying stalls

GBP/USD has picked up fresh bids and regained the 1.3300 mark in the European trading hours on Monday. A pause in the US Dollar advance and a mildly positive risk sentment help the pair recover ground. However, the technical outlook on the daily time frame suggests a weakening bullish trend.

GBP/USD News
Gold price hangs above $3,265-3,260 support amid receding safe-haven demand and mildly positive USD

Gold price hangs above $3,265-3,260 support amid receding safe-haven demand and mildly positive USD

Gold price sticks to its bearish bias for the second successive day on Monday and trades just above the $3,265-3,260 pivotal support during the first half of the European session. Despite of mixed signals from the US and China, the optimism over the potential de-escalation of trade tensions between the world's two largest economies turns out to be a key negative factor.

Gold News
Monero Price Forecast: XMR soars over 50% amid rising demand for privacy coins

Monero Price Forecast: XMR soars over 50% amid rising demand for privacy coins

Monero (XMR) price is extending its gains by 50% at the time of writing on Monday, following a 9.33% rally the previous week. The main reason for XMR’s rally is speculation that the token, which is widely known for its status as a privacy coin, was used to launder a suspected theft involving 3,520 BTC worth $330.7 million.

Read more
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets

Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets

Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.

Read more
The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025