Gold Price Forecast: XAU/USD recovers some lost ground above $2,020, Michigan sentiment data eyed

Gold price holds positive ground on the modest loss of USD.
The stronger US economic data support the tighter-for-longer narrative around the Fed, which drags the gold price lower.
US weekly Initial Jobless Claims fell to 187K last week versus 203K prior, above the consensus.
Investors await the preliminary US Michigan Consumer Sentiment Index and Existing Home Sales, due on Friday.

Lallalit Srijandorn FXStreet

Gold price (XAU/USD) recovers some lost ground during the early Asian session on Friday. The yellow metal rebounds as the US Dollar recovery stalls. Meanwhile, the US Dollar Index (DXY) hovers around 103.40. The US Treasury yield consolidates its gains, with the 10-year yield standing at 4.14%. The gold price currently trades near $2,024, up 0.09% on the day.

The resilient economic data in the US and the dovish stance of the Federal Reserve (Fed) weaken expectations of an early rate cut. Fed officials have not leaned towards endorsing an early rate cut, although the probability of interest rate cuts in March remains around 57%.

On Thursday, the US weekly Initial Jobless Claims fell to 187K for the week ending January 13 from 203K in the previous reading, better than the market expectation of 207K. Additionally, the January Philadelphia Fed Manufacturing Survey improved to -10.6 from -12.8 in December. The upbeat economic data support the tighter-for-longer narrative around the Fed, which might lift the Greenback and weigh on the USD-denominated gold.

Later on Friday, market players will focus on the preliminary US Michigan Consumer Sentiment Index and Existing Home Sales. Also, FOMC M. Daly (San Francisco) and M. Barr (Board of Governors) are set to speak later in the day.

XAU/USD

Overview
Today last price	2024.16
Today Daily Change	17.97
Today Daily Change %	0.90
Today daily open	2006.19

Trends
Daily SMA20	2045.93
Daily SMA50	2021.06
Daily SMA100	1971.97
Daily SMA200	1963.95

Levels
Previous Daily High	2033.02
Previous Daily Low	2001.9
Previous Weekly High	2062.33
Previous Weekly Low	2013.38
Previous Monthly High	2144.48
Previous Monthly Low	1973.13
Daily Fibonacci 38.2%	2013.79
Daily Fibonacci 61.8%	2021.13
Daily Pivot Point S1	1994.39
Daily Pivot Point S2	1982.58
Daily Pivot Point S3	1963.27
Daily Pivot Point R1	2025.51
Daily Pivot Point R2	2044.82
Daily Pivot Point R3	2056.63

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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