Gold Price Forecast: XAU/USD moves below $1,850 on market caution, Fed Powell speech eyed


  • Gold price faces challenges after the moderate US data on Friday.
  • US passed bills to avert a government shutdown, securing funding until November 17.
  • Higher US Treasury yields put pressure on non-yielding assets like Gold.

Gold price extends its losing streak that began on September 25, trading lower around $1,840 per troy ounce during the Asian session on Monday.

China’s Manufacturing PMI data was released over the weekend, which showed improvement into positive territory but failed to provide any support for the Gold prices. China’s NBS Manufacturing PMI for August grew to 50.2 from the previous 49.7 figures, exceeding the 50.0 expected.

Additionally, the Non-Manufacturing PMI rose to 51.7 from the 51.0 previous reading, surpassing the market consensus of 51.5.

The US Dollar Index (DXY) holds ground to continue to gain in the second trading session after the moderate datasets from the United States (US). The spot price bids higher around 106.20.

Additionally, the upbeat US Treasury Yields are contributing support to the USD’s strength. The yield on the 10-year US Treasury bond stands at 4.61% by the press time, up by 0.96%.

The prices of precious metals face challenges, primarily due to the upbeat US Dollar (USD) after the moderate economic data released on Friday. US Michigan Consumer Sentiment Index (Sep) improved to 68.1 from the previous figure of 67.7, which was expected to remain unchanged.

US Core PCE - Price Index (YoY) for August rose 3.9% as estimated, eased from the previous reading of 4.3%. Core PCE (MoM) showed a soft reading of 0.1% against the market consensus to be consistent at the 0.2% prior.

Following the Friday session, bills were successfully passed in the US to avert a government shutdown, securing funding until November 17. This development has prompted a resumption of the US Dollar (USD) upward trajectory.

The Gold traders will likely watch the upcoming US ISM Manufacturing PMI for September ahead of the Fed’s Chair Jerome Powell's speech on Monday.

XAU/USD: additional important levels

Overview
Today last price 1843.97
Today Daily Change -4.57
Today Daily Change % -0.25
Today daily open 1848.54
 
Trends
Daily SMA20 1912.2
Daily SMA50 1921.29
Daily SMA100 1935.2
Daily SMA200 1927.58
 
Levels
Previous Daily High 1879.88
Previous Daily Low 1846.37
Previous Weekly High 1927.27
Previous Weekly Low 1846.37
Previous Monthly High 1953.01
Previous Monthly Low 1846.37
Daily Fibonacci 38.2% 1859.17
Daily Fibonacci 61.8% 1867.08
Daily Pivot Point S1 1836.65
Daily Pivot Point S2 1824.75
Daily Pivot Point S3 1803.14
Daily Pivot Point R1 1870.16
Daily Pivot Point R2 1891.77
Daily Pivot Point R3 1903.67

 

 

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 consolidates below 1.0900 following Wednesday's rally

EUR/USD consolidates below 1.0900 following Wednesday's rally

EUR/USD trades in a tight range below 1.0900 after registering impressive gains on Wednesday. The US Dollar struggles to stage a rebound following the CPI-inspired selloff as investors await mid-tier data releases and comments from Fed officials.

EUR/USD News

GBP/USD corrects lower after testing 1.2700

GBP/USD corrects lower after testing 1.2700

Following Wednesday's upsurge, GBP/USD stretched higher and touched a fresh multi-week high at 1.2700 in the Asian session on Thursday. With the market focus shifting to US Jobless Claims data, the pair corrects lower in the European trading hours. 

GBP/USD News

Gold price drifts higher as US CPI inflation fuels Fed rate cuts

Gold price drifts higher as US CPI inflation fuels Fed rate cuts

The Gold price gains traction amid the weaker US Dollar on Thursday. The recent CPI report showed inflation in the US slowed in April, prompting market players to increase their bets on the US Fed rate cuts this year.

Gold News

Bitcoin likely to return to all-time high of $73,949, QCP Capital says

Bitcoin likely to return to all-time high of $73,949, QCP Capital says

Bitcoin (BTC) price is likely to rally back to $74,000 in the coming weeks, it's all-time high reached in March, riding on three bullish catalysts, according to crypto trading firm QCP Capital.

Read more

Dow Jones Industrial Average soars 350 points, sets new all-time high as rate cut hopes surge

Dow Jones Industrial Average soars 350 points, sets new all-time high as rate cut hopes surge

The Dow Jones Industrial Average clipped into a fresh all-time high on Wednesday, gaining almost nine-tenths of a percent during the US market session after US Consumer Price Index inflation slipped further back.

Read more

Forex MAJORS

Cryptocurrencies

Signatures