Gold Price Forecast: XAU/USD hovers around $1,925 amid the geopolitical tensions, Chinese stimulus hope


  • Gold price trades near $1,925 amid the mixed sentiment. 
  • The geopolitical tensions between Israel and Palestine boost the demand for XAU/USD. 
  • The upbeat US inflation report has prompted investors to price in a possible rate rise by the Federal Reserve (Fed).
  • Investors will focus on the US Retail Sales, Chinese growth numbers, and additional stimulus plans from China. 

Gold price (XAU/USD) posts modest losses around $1,925 during the early Asian session on Monday. The market sentiment is mixed as investors have some hope for a new round of Chinese stimulus plans to boost the economy, while the geopolitical tensions between Israel and Palestine remain the focus. 

Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, declined to 106.60 after retreating from a high of 106.78.

On Sunday, Israeli Prime Minister Benjamin Netanyahu vowed to "demolish Hamas" as his military got ready ground operations in Gaza to root out the militant group, According to Reuters. That said, the geopolitical tensions between Israel and Palestine boost the demand for a traditional safe-haven asset like Gold.

On Friday, the preliminary US Michigan Consumer Sentiment Index for October fell to 63.0 from 68.1 the previous month, falling short of the 67.4 estimated. Meanwhile, one-year Inflation expectations climbed from 3.2% to 3.8%, and five-year inflation estimates grew from 2.8% to 3%. 

Additionally, the US Consumer Price Index (CPI) annually and monthly for September came in at 3.7% and 0.4%, respectively. Both figures exceeded the market expectations. The upbeat US inflation report has prompted investors to price in a possible rate rise by the Federal Reserve (Fed). This, in turn, might lift the US Dollar (USD) and weigh on the gold price. 

Apart from this, the positive development of a new round of Chinese stimulus plans could boost gold demand as China is the world's largest gold producer and consumer. The People’s Bank of China (PBoC) Governor Pan Gongsheng spoke over the weekend at the International Monetary Fund meeting in Morocco. Gongsheng stated that the Chinese authorities will provide continuous support to ride the uptick in economic momentum. 

Moving on, gold traders will monitor the US Retail Sales for September, with the figure expected to rise 0.2%. On Wednesday, China’s Gross Domestic Product (GDP) for the third quarter, Retail Sales, and Industrial Production will be due. Traders will take cues from these events and find trading opportunities around the gold price.

 

XAU/USD

Overview
Today last price 1924.67
Today Daily Change -8.57
Today Daily Change % -0.44
Today daily open 1933.24
 
Trends
Daily SMA20 1878.44
Daily SMA50 1901.39
Daily SMA100 1923.28
Daily SMA200 1929.19
 
Levels
Previous Daily High 1933.34
Previous Daily Low 1868.66
Previous Weekly High 1933.34
Previous Weekly Low 1832.62
Previous Monthly High 1953.01
Previous Monthly Low 1846.37
Daily Fibonacci 38.2% 1908.63
Daily Fibonacci 61.8% 1893.37
Daily Pivot Point S1 1890.15
Daily Pivot Point S2 1847.07
Daily Pivot Point S3 1825.47
Daily Pivot Point R1 1954.83
Daily Pivot Point R2 1976.43
Daily Pivot Point R3 2019.51

 

 

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 recovers toward 1.0850 as risk mood improves

EUR/USD recovers toward 1.0850 as risk mood improves

EUR/USD gains traction and rises toward 1.0850 on Friday. The improvement seen in risk mood makes it difficult for the US Dollar (USD) to preserve its strength and helps the pair erase a portion of its weekly losses. 

EUR/USD News

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD stabilizes above 1.2700 after downbeat UK Retail Sales-led dip

GBP/USD staged a rebound and stabilized above 1.2700 after dropping to a weekly low below 1.2680 in the early European session in response to the disappointing UK Retail Sales data. The USD struggles to find demand on upbeat risk mood and allows the pair to hold its ground. 

GBP/USD News

Gold rebounds to $2,340 area, stays deep in red for the week

Gold rebounds to $2,340 area, stays deep in red for the week

Gold fell nearly 4% in the previous two trading days and touched its weakest level in two weeks below $2,330 on Thursday. As US Treasury bond yields stabilize on Friday, XAU/USD stages a correction toward $2,340 but remains on track to post large weekly losses.

Gold News

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Kabosu, the popular Shiba Inu dog that inspired the logo of the largest meme coin by market capitalization, Dogecoin (DOGE), died early on Friday after losing her fight to leukemia and liver disease.

Read more

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Week ahead – US PCE inflation and Eurozone CPI data enter the spotlight

Dollar traders lock gaze on core PCE index. Eurozone CPIs in focus as June cut looms. Tokyo CPIs may complicate BoJ’s policy plans. Aussie awaits Australian CPIs and Chinese PMIs.

Read more

Forex MAJORS

Cryptocurrencies

Signatures