Gold Price Forecast: XAU/USD holds gains above $1,750 as US GDP hogs limelight


  • Gold price is aiming to shift its business above the immediate hurdle of $1,750.00.
  • The US Dollar has sensed support around 106.00 amid a quiet market mood.
  • The preliminary GDP for the third quarter is seen unchanged at 2.6%., however, a decline would delight the Fed.

Gold price (XAU/USD) is focusing on establishing above the critical resistance of $1,750.00 in the early Asian session after a solid recovery from $1,746.00 witnessed late Friday. Broadly, the precious metal is looking to recapture the three-and-a-half-month high at $1,786.54 amid a broader strength in market mood.

Global markets remained subdued on Friday amid the unavailability of a potential trigger that indicates a situation of volatility contraction. This week, the markets are expected to display some meaningful moves, therefore a power-pack performance is expected from various assets. Meanwhile, the US Dollar Index (DXY) has attempted a recovery after dropping to near 106.00. The 10-year US Treasury yields have failed to cross the critical hurdle of 3.70%.

Going forward, the US Gross Domestic Product (GDP) data will be of utmost importance. The preliminary GDP for the third quarter is seen unchanged at 2.6%. As the Federal Reserve (Fed) is utterly dedicated to bringing price stability, a slower growth rate is highly recommended. A spell of improvement in the growth rates will continue to keep reign into inflation as it indicates robust demand from individuals, which doesn’t lead to a decline in price growth by the manufacturers and service providers.

Gold technical analysis

On an hourly scale, Gold price has displayed a steep recovery after testing the 38.2% Fibonacci retracement (plotted from November 3 low at $1,616.69 to November 15 high at $1,758.88) at $1,722.00 and has also crossed the 23.65 Fibo retracement at $1,746.50.

The precious metal has also crossed the 20-period Exponential Moving Average (EMA) at $1,753.17, which indicates that the short-term trend is solid again.

Meanwhile, the Relative Strength Index (RSI) (14) has rebounded after sensing support around 40.00, which signals that dips are explosively capitalized by the market participants.

Gold hourly chart

XAU/USD

Overview
Today last price 1756.33
Today Daily Change 0.00
Today Daily Change % 0.00
Today daily open 1756.33
 
Trends
Daily SMA20 1720.96
Daily SMA50 1686.9
Daily SMA100 1712.08
Daily SMA200 1799
 
Levels
Previous Daily High 1761.2
Previous Daily Low 1746.03
Previous Weekly High 1761.2
Previous Weekly Low 1721.23
Previous Monthly High 1729.58
Previous Monthly Low 1617.35
Daily Fibonacci 38.2% 1755.41
Daily Fibonacci 61.8% 1751.82
Daily Pivot Point S1 1747.84
Daily Pivot Point S2 1739.35
Daily Pivot Point S3 1732.67
Daily Pivot Point R1 1763.01
Daily Pivot Point R2 1769.69
Daily Pivot Point R3 1778.18

 

 

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

USD/JPY off lows, stays pressured near 142.50 ahead of BoJ policy decision

USD/JPY off lows, stays pressured near 142.50 ahead of BoJ policy decision

USD/JPY has bounced off lows but remains pressured near 142.50 in the Asian session on Friday. Markets turn risk-averse and flock to the safety in the Japanese Yen while the Fed-BoJ policy divergence and hot Japan's CPI data also support the Yen ahead of the BoJ policy verdict. 

USD/JPY News
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed. 

AUD/USD News
Gold price treads water below record peak, awaits Fedspeak

Gold price treads water below record peak, awaits Fedspeak

Gold price hovers below the all-time peak touched earlier this week amid a bearish US Dollar and rising bets for more upcoming rate cuts by the Fed. Concerns over an economic downturn in China keep the safe-haven Gold price afloat. Fedspeak remains on tap. 

Gold News
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV

Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD (RUSD) stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures