Gold Price Forecast: XAU/USD oscillates at a make or break around $1,710.00, US NFP eyed


  • Gold price bears are gaining momentum on soaring yields after Fed’s hawkish commentary.
  • Fed policymaker Evans sees interest rate hikes by 125 bps collectively in the remaining 2022.
  • The DXY will dance to the tunes of US NFP data ahead.

Gold price (XAU/USD) has slipped modestly after facing barricades of around $1,715.00 in the Tokyo session. The precious metal is expected to slip further to near $1,700.00 as yields are hovering at elevated levels amid hawkish commentaries from Federal Reserve (Fed) policymakers. The risk-off profile is extremely solid as S&P500 is expected to decline further.

Fed Governor Christopher Waller crosses wires on Thursday, stating that he sees little reason in the slow down of the policy tightening pace by the central bank. He further added that "Inflation is far from the FOMC’s goal and not likely to fall quickly,"

The commentary from Chicago Fed Bank President Charles L. Evans is more quantitative and provides specific targets ahead. Fed policymaker believes that the central bank will reach the targeted rate of 4.5-4.75% by the spring of 2023. And, the central bank will step up the interest rates by 125 basis points (bps) in the remaining two monetary policy meetings.

Meanwhile, the US dollar index (DXY) seems firmer around 112.26, and is likely to stretch its upside journey ahead of the US Nonfarm Payrolls (NFP) data. As per the consensus, the US economy added 250k jobs in September against the prior additions of 315k. The jobless rate is expected to remain constant at 3.7%.

Gold technical analysis

Gold prices have declined after failing to cross the weekly hurdle of $1,729.58 on Thursday. The asset has formed a Double Top chart pattern which indicates the unavailability of extreme strength while crossing the prior hurdle.  

The precious metal is oscillating around the 50-period Exponential Moving Average (EMA) at $1,712.00. The 200-EMA at $1,688.00 is still advancing, which states that the uptrend is still intact.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 range from the bullish range of 60.00-80.00.

Gold hourly chart

XAU/USD

Overview
Today last price 1712.28
Today Daily Change -3.97
Today Daily Change % -0.23
Today daily open 1716.25
 
Trends
Daily SMA20 1679.72
Daily SMA50 1724.38
Daily SMA100 1762.48
Daily SMA200 1823.19
 
Levels
Previous Daily High 1727.85
Previous Daily Low 1700.53
Previous Weekly High 1675.49
Previous Weekly Low 1614.85
Previous Monthly High 1735.17
Previous Monthly Low 1614.85
Daily Fibonacci 38.2% 1710.97
Daily Fibonacci 61.8% 1717.41
Daily Pivot Point S1 1701.9
Daily Pivot Point S2 1687.56
Daily Pivot Point S3 1674.58
Daily Pivot Point R1 1729.22
Daily Pivot Point R2 1742.2
Daily Pivot Point R3 1756.54

 

 

 

 

 

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