Gold Price Forecast: XAU/USD kicks off the week in consolidation around $1,890

Gold price consolidates as an effect of declined US yields and risk aversion.
Upbeat US economic data prompts a cautious market sentiment.
PBoC reduced interest rates by 10 bps against the expected 15 bps.

FXStreet Team FXStreet

Gold price struggles to snap a losing streak, treading waters near $1,890 per troy ounce during the Asian session on Monday. The precious metal is also benefiting from the retreating US Dollar (USD), driven by a decline in US Treasury yields and risk aversion.

However, the price of Gold experienced downward pressure on Friday due to upbeat United States (US) economic data, leading to cautious market sentiment as traders remain vigilant for more cues regarding the inflation outlook. The yellow metal could face a challenge due to China’s economic woes. These elements could potentially impact the overall trajectory of Gold prices.

Investors seek additional indications that could provide them with a clearer understanding of the potential direction of the US Federal Reserve (Fed) regarding monetary policy in September’s meeting. This suggests that caution persists in the market, leading traders to remain uncertain.

The People's Bank of China (PBoC) reduced interest rates by 10 basis points (bps) against the market expectation of a 15 bps reduction on Monday. Investors' sentiment could be heavily influenced by the PBOC's decision and broader trends in China's economy. In spite of the cautious Chinese policymakers, the market anticipates more interest rate reductions and broader relaxation measures in the months ahead. This situation could provide support to the price of Gold, which is already under pressure.

The US Dollar Index (DXY), which measures the performance of the Greenback against the six major currencies, hovers around 103.40. The US Dollar (USD) trades sideways despite strong US data, prompting a sense of caution in the market as it seeks further signals about the inflation scenario.

In the upcoming week, investors will likely monitor the release of US economic data, particularly Home Sales and the preliminary S&P Global PMI surveys for August along with Fed Chair Jerome Powell's speech on Friday during the Jackson Hole Symposium. This event could provide insights into the state of the US economy, helping to shape potential strategies for placing new bets on the Gold.

XAU/USD: Additional important levels

Overview
Today last price	1888.26
Today Daily Change	-1.36
Today Daily Change %	-0.07
Today daily open	1889.62

Trends
Daily SMA20	1930.01
Daily SMA50	1935.14
Daily SMA100	1962.66
Daily SMA200	1906.71

Levels
Previous Daily High	1896.92
Previous Daily Low	1886.83
Previous Weekly High	1916.29
Previous Weekly Low	1885.13
Previous Monthly High	1987.54
Previous Monthly Low	1902.77
Daily Fibonacci 38.2%	1893.07
Daily Fibonacci 61.8%	1890.68
Daily Pivot Point S1	1885.33
Daily Pivot Point S2	1881.03
Daily Pivot Point S3	1875.24
Daily Pivot Point R1	1895.42
Daily Pivot Point R2	1901.21
Daily Pivot Point R3	1905.51

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

Week ahead – Central bank and earnings bonanza could roil markets

Fed, ECB and BoJ to sit on the sidelines after September hikes. But RBNZ and BoC poised to lift borrowing costs. Inflation data out of the US, Japan, Australia to also be important. UK budget: no surprises would be good news for the Pound.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.