Gold Price Forecast: XAU/USD oscillates below $2,000 after a V-shape recovery inspired by Fed Beige Book

Gold price is hovering below $2,0000 after a V-shape recovery move.
The 10-year US Treasury yields jumped above 3.59% as one more rate hike by the Fed is in the pipeline.
Several Fed districts noted that banks tightened lending standards amid increased uncertainty and concerns about liquidity.

Sagar Dua FXStreet

Gold price (XAU/USD) is facing hurdles in extending its recovery above the immediate resistance of $1,997.00 in the early Asian session. The precious metal is struggling to recapture the psychological resistance of $2,000.00 after a V-shape recovery. A confident recovery in the Gold price from the cushion of $1,970.00 was inspired by the release of the Federal Reserve’s (Fed) Beige Book.

S&P500 futures are showing further losses in early Tokyo after back-to-back subdued trading sessions, indicating a cautious approach by market participants due to the quarterly result season. Broadly, the US Dollar Index (DXY) is showing signs of volatility contraction below 102.00 as Fed’s Beige Book failed to infuse blood into the former. Meanwhile, the 10-year US Treasury yields jumped above 3.59% as one more rate hike by the Fed is in the pipeline.

The release of the Fed’s Beige Book first after the banking turmoil confirmed that the ghost of tight credit conditions by US commercial banks, as a safety measure amid a turbulent environment, is for real.

Several districts noted that banks tightened lending standards amid increased uncertainty and concerns about liquidity, which has triggered the risk of declining economic prospects as lower advances to firms won’t let them work at the current pace. Auto sales remained moderate, confirming no further jump in retail demand ahead.

Gold technical analysis

Gold price has shown a stellar recovery after dropping to near the lower portion of the Rising Channel chart pattern formed on a two-hour scale. The V-shape recovery shown by the Gold price indicates the presence of responsive buyers at lower levels, making the area value bet for the market participants. The precious metal is making efforts to shift above the 20-period Exponential Moving Average (EMA) at $1,995.40, which will make the short-term trend bullish.

Meanwhile, the Relative Strength Index (RSI) (14) has managed to get back into the 40.00-60.00 range from the bearish range of 20.00-40.00.

Gold two-hour chart

XAU/USD

Overview
Today last price	1994.93
Today Daily Change	-10.49
Today Daily Change %	-0.52
Today daily open	2005.42

Trends
Daily SMA20	1990.71
Daily SMA50	1912.38
Daily SMA100	1880.5
Daily SMA200	1796.32

Levels
Previous Daily High	2011.9
Previous Daily Low	1991.32
Previous Weekly High	2048.75
Previous Weekly Low	1986.28
Previous Monthly High	2009.88
Previous Monthly Low	1809.46
Daily Fibonacci 38.2%	2004.04
Daily Fibonacci 61.8%	1999.18
Daily Pivot Point S1	1993.86
Daily Pivot Point S2	1982.3
Daily Pivot Point S3	1973.28
Daily Pivot Point R1	2014.44
Daily Pivot Point R2	2023.46
Daily Pivot Point R3	2035.02

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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