Gold Price Forecast: XAU/USD gives up and returns to the $1,810 price zone

XAU/USD jumped to a fresh three-week high of $1,833.32 a troy ounce following Wall Street’s opening amid a better market mood maintaining market players in risk-on mode. Stocks advanced despite tepid US data, while the greenback rallied despite firmer US Treasury yields.

The bullish momentum of the bright metal faded as the session developed, and it fell back towards the current $1,810 price zone, retaining its long-term upward bias. It is worth adding that volumes are low heading into year-end, with most major pairs and assets holding within familiar levels, despite some short-lived directional spikes.

US Dollar down amid an upbeat mood

Market participants welcome news that US inflation keeps receding, according to the core PCE Price Index released last Friday. Another catalyst for the upbeat mood came from China, as the country is further easing COVID-related restrictions.

Technically, according to FXStreet.com chief analyst Valeria Bednarik, “the daily chart shows that the pair keeps developing above all of its moving averages, with the 20 Simple Moving Average (SMA) extending its advance above the 200 SMA, in line with the dominant bullish trend. Technical indicators, in the meantime, picked up from around their midlines, offering firmly bullish upward slopes within positive levels.”