Gold Price Forecast: XAU/USD looks to surpass $1,940 amid weaker yields, US GDP eyed


  • Gold price attempts to surpass $1,940.00 as US yields drop further.
  • The USD Index remains weak this year as attention is turning towards policy tightening in other advanced economies.
  • Gold price is auctioning in a Rising Wedge, portraying a volatility contraction.

Gold price (XAU/USD) aims to overstep the immediate resistance of $1,940.00 in the Tokyo session. The precious metal is gaining strength amid rising demand for the US government bonds that have weakened yields further. The 10-year US Treasury yields have dropped to near 3.45%.

A sell-off in the S&P500 futures indicates that the market participants' risk-taking capacity is fading away. Missed estimates by tech-giant Microsoft in its December earnings and technical glitch in NYSE are impacting United States equities. The US Dollar Index (DXY) displays a sideways profile around 101.50 as investors await US Gross Domestic Product (GDP) data for fresh impetus.

Gold price might find strength if US GDP contracts dramatically, which might further bolster the expectations for a smaller interest rate hike by the Federal Reserve (Fed) in its February meeting. As per the estimates, the annual Q4CY2022 GDP will contract to 2.8% from the former release of 3.2%. For the USD Index outlook, economists at CIBC Capital Markets look for the mighty US Dollar to weaken in 2023 as the Fed is set to undershoot market expectations for the peak fed funds rate, and attention is turning to policy tightening in other advanced economies.

Gold technical analysis

Gold price is auctioning in a Rising Wedge chart pattern on an hourly scale that indicates volatility contraction, which will result in wider ticks and heavy volume after an explosion. The 20-period Exponential Moving Average (EMA) at $1,935.33 is a cushion for the Gold bulls.

Meanwhile, the Relative Strength Index (RSI) (14) oscillates in a 40.00-60.00 range, demonstrating a lackluster performance by the Gold price ahead.

Gold hourly chart

XAU/USD

Overview
Today last price 1938.11
Today Daily Change 0.16
Today Daily Change % 0.01
Today daily open 1937.95
 
Trends
Daily SMA20 1878.11
Daily SMA50 1818.87
Daily SMA100 1748.69
Daily SMA200 1775.67
 
Levels
Previous Daily High 1942.57
Previous Daily Low 1917.19
Previous Weekly High 1937.57
Previous Weekly Low 1896.63
Previous Monthly High 1833.38
Previous Monthly Low 1765.89
Daily Fibonacci 38.2% 1932.87
Daily Fibonacci 61.8% 1926.89
Daily Pivot Point S1 1922.57
Daily Pivot Point S2 1907.19
Daily Pivot Point S3 1897.19
Daily Pivot Point R1 1947.95
Daily Pivot Point R2 1957.95
Daily Pivot Point R3 1973.33

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD remains depressed near 1.0900 ahead of US NFP

EUR/USD remains depressed near 1.0900 ahead of US NFP

EUR/USD is attempting to build a cushion near 1.0900 in the early European morning. The market mood remains cautious, as investors assess the dovish Fed and ECB policy announcements, repositioning ahead of the key US NFP data. 

EUR/USD News

GBP/USD defends 1.2200 amid cautious mood, US NFP eyed Premium

GBP/USD defends 1.2200 amid cautious mood, US NFP eyed

GBP/USD is struggling for a clear direction while defending the 1.2200 mark early Friday. The dovish BoE policy outlook combined with a broad US Dollar rebound is weighing on the pair. Focus shifts to the US NFP data for fresh trading impetus. 

GBP/USD News

Will Gold defend 21DMA support on US Nonfarm Payrolls? Premium

Will Gold defend 21DMA support on US Nonfarm Payrolls?

Gold price is holding steady above the $1,900 mark, as sellers take a breather after a sharp pullback from ten-month highs of $1,960. A sesne of calm prevails in Fridya’s tradiung so far, as investors stay on the sidelines and assess the latest central banks’ policy decisions and its market impact going forward.

Gold News

Uniswap price could crash 30% as UNI forms a bearish swing failure pattern

Uniswap price could crash 30% as UNI forms a bearish swing failure pattern

Uniswap price shows a steady uptrend with higher highs and higher lows. While this outlook alone might instill confidence in a layman investor, a closer look reveals weakness. Market participants need to be cautious as a trend reversal could be brewing.

Read more

US January Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises Premium

US January Nonfarm Payrolls Preview: Analyzing Gold price's reaction to NFP surprises

Historically, how impactful has the US jobs report been on gold’s valuation? In this article, we present results from a study in which we analyzed the XAUUSD pair's reaction to the previous 30 NFP prints.

Read more

Forex MAJORS

Cryptocurrencies

Signatures