Gold Price Forecast: XAU/USD hovers above $2,010 on weaker US Dollar

Gold price extends gains as investors take caution ahead of the skew of US data.
China's industrial profits declined by 7.8% could dampen the positive sentiment arising from the PBoC stimulus measures.
Fed officials mentioned closely monitoring incoming data before making policy decisions.

Akhtar Faruqui FXStreet

Gold price maintains its position above $2,010 per troy ounce during the European session on Monday. The US Dollar's (USD) weakness, fueled by increasing speculation that the Federal Reserve (Fed) has concluded its interest rate hikes, has proven advantageous for the yellow metal. Gold price has benefited from this trend, alongside indications of a global economic slowdown.

The price of Gold might experience additional strength, driven by positive sentiment stemming from the news that the People's Bank of China (PBoC) has issued a notice to boost financial support for private firms.

However, the Year-to-Date (YTD) data on China's industrial profits, showing a decline of 7.8% compared to the previous drop of 9.0%, may have a dampening effect on the initially positive sentiment arising from the People's Bank of China's (PBoC) additional stimulus measures.

US Dollar Index (DXY) extends losses despite improved US Treasury yields. Even though there's speculation about the possibility of easing, Federal Reserve (Fed) officials emphasized the need for further tightening. Their stance indicated a commitment to closely monitoring incoming data before making decisions.

Market participants seem adopting caution before a string of key economic readings from the United States (US), including the Gross Domestic Product (GDP) Annualized for the third quarter, and the Core Personal Consumption Expenditures (PCE) Price Index, a key inflation indicator. These data may offer a comprehensive view of the country's economic performance and price trends excluding volatile food and energy components.

XAU/USD: additional levels to watch

Overview
Today last price	2012.37
Today Daily Change	10.02
Today Daily Change %	0.50
Today daily open	2002.35

Trends
Daily SMA20	1976.13
Daily SMA50	1935.04
Daily SMA100	1933.44
Daily SMA200	1940.71

Levels
Previous Daily High	2003.64
Previous Daily Low	1991.53
Previous Weekly High	2007.63
Previous Weekly Low	1965.51
Previous Monthly High	2009.49
Previous Monthly Low	1810.51
Daily Fibonacci 38.2%	1999.01
Daily Fibonacci 61.8%	1996.16
Daily Pivot Point S1	1994.71
Daily Pivot Point S2	1987.06
Daily Pivot Point S3	1982.6
Daily Pivot Point R1	2006.82
Daily Pivot Point R2	2011.28
Daily Pivot Point R3	2018.93

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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Gold (XAU/USD) is struggling to capitalize on a weaker US Dollar (USD), after repeatedly failing to establish itself above the $4,200 level. The precious metal remains confined to a relatively narrow trading range despite a combination of developments that would normally support higher prices.