Gold Price Forecast: XAU/USD juggles below $1,740 ahead of US GDP


  • Gold price is hovering below $1,740.00 as investors await US GDP.
  • Less-than-expected hawkish commentary from the Fed has infused fresh blood into the gold bulls.
  • The DXY has witnessed an extreme sell-off as the Fed has confirmed a slump in retail demand.

Gold price (XAU/USD) is displaying topsy-turvy moves in a minute range of $1,734.19-1,741.78 in the Asian session. The precious metal is auctioning in a charted territory after a sheer upside move from a low of $1,711.56 on Wednesday. Usually, a vertical upside move is followed by a sideways action as investors initiate more longs through the inventory distribution structure.

A mild hawkish commentary from the Federal Reserve (Fed) in the monetary policy meeting on Wednesday has infused fresh blood into the gold bulls. The Fed is seeing the interest rates at 3.5% by the end of 2022. This indicates that there is less room for bumper rate hikes now and September’s monetary policy will see normalcy in the rate hike extent.

Meanwhile, the US dollar index (DXY) is expected to perform vulnerable as Fed chair Jerome Powell has highlighted a slump in retail demand. Going forward, the US Gross Domestic Product (GDP) numbers will remain in focus. As per the market consensus, the US GDP data will shift lower to 8% against the prior release of 8.3% on a quarterly basis. While the annualized figure will significantly improve to 0.4% vs. -1.6% in the prior release.

Gold technical analysis

On an hourly scale, the gold price is gearing up for an upside break of the supply zone placed in a narrow range of $1,739.63-1,745.03. A golden cross, represented by the 50-and 200-period Exponential Moving Averages (EMAs) at $1,720.00 has bolstered the odds of a bullish reversal.

Adding to that, the Relative Strength Index (RSI) has shifted into the bullish range of 60.00-80.00, which signals more gains ahead.

Gold hourly chart

XAU/USD

Overview
Today last price 1736.97
Today Daily Change 2.87
Today Daily Change % 0.17
Today daily open 1734.1
 
Trends
Daily SMA20 1738.06
Daily SMA50 1800.57
Daily SMA100 1858.08
Daily SMA200 1842.73
 
Levels
Previous Daily High 1740.32
Previous Daily Low 1711.55
Previous Weekly High 1739.37
Previous Weekly Low 1680.91
Previous Monthly High 1879.26
Previous Monthly Low 1802.79
Daily Fibonacci 38.2% 1729.33
Daily Fibonacci 61.8% 1722.54
Daily Pivot Point S1 1716.99
Daily Pivot Point S2 1699.89
Daily Pivot Point S3 1688.22
Daily Pivot Point R1 1745.76
Daily Pivot Point R2 1757.43
Daily Pivot Point R3 1774.53

 

 

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

GBP/USD trims a part of intraday losses, down a little below 1.3200 ahead of BoE

GBP/USD trims a part of intraday losses, down a little below 1.3200 ahead of BoE

The GBP/USD pair finds some support near the 1.3150 region on Thursday and for now, seems to have stalled its retracement slide from the 1.3300 neighborhood, or the highest level since March 2022 touched the previous day. 

GBP/USD News
EUR/USD flat lines above 1.1100 after Fed's bumper rate cut

EUR/USD flat lines above 1.1100 after Fed's bumper rate cut

The EUR/USD pair trades flat during the early European session on Thursday. The major pair initially edges higher to monthly highs of 1.1189 after a large rate cut by the Federal Reserve at its September meeting and eases back to near 1.1120.  

EUR/USD News
Gold defends $2,550 in the Fed’s aftermath, ahead of US data

Gold defends $2,550 in the Fed’s aftermath, ahead of US data

Gold price is defending $2,550 early Thursday, catching a breath after intense volatility witnessed in the aftermath of the all-important US Federal Reserve monetary policy announcements and Fed Chairman Jerome Powell’s press conference.

Gold News
Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin surges to $62,000 mark after 50 bps Fed rate cut

Bitcoin and Ripple eye for a rally as they break and find support around their resistance barrier. Meanwhile, Ethereum demonstrates signs of recovery as it approaches a critical resistance level, indicating that an upward rally could be on the horizon if it successfully breaks through.

Read more
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

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