Gold Price Forecast: XAU/USD recovers some lost ground above $2,030, focus on Chinese CPI, PPI data


  • Gold price trades in negative territory for the second consecutive week near $2,030.
  • The US Consumer Price Index (CPI) report came in higher than expected on Thursday.
  • Futures traders see the Federal Reserve (Fed) potentially delaying its first interest rate cut.
  • Traders will monitor the Chinese CPI, and PPI on Friday.

Gold price (XAU/USD) bounces off the weekly low of $2,013 to $2,030 during the early Asian session on Friday. Nonetheless, the upside of the yellow metal might be limited due to the possibility that the Federal Reserve (Fed) may not begin cutting interest rates as early as expected, which might exert some selling pressure on gold prices.

Meanwhile, the US Dollar Index (DXY), an index of the value of the USD measured against a basket of six world currencies, rises to 102.30. The US Treasury yields edge higher, with the 10-year yield standing at 3.97%.

The US inflation report came in higher than expected on Thursday. The US Consumer Price Index (CPI) for December rose to 3.4% YoY from the previous reading of 3.1%, better than the expectation of 3.2%. On a monthly basis, the headline CPI grew 0.3% versus 0.1% prior, above the consensus of 0.2%. The Core CPI, which excludes volatile food and energy prices, climbed 3.9% YoY in December compared to the estimation of 3.8%.

The US Dollar (USD) attracts some buyers following the upbeat US data as futures traders see the Federal Reserve (Fed) potentially delaying its first interest rate cut. Chicago Fed President Austan Goolsbee said on Thursday that 2023 was a "hall-of-fame" year for falling inflation, setting the path for a couple of interest rate cuts in the United States in 2024 if the trend continued. However, New York Fed President John Williams stated that the “restrictive” monetary policy is likely to stay in place for some time.

Investors will take more cues from the Chinese economic data on Friday. The nation’s Consumer Price Index (CPI) is estimated to drop 0.4% YoY in December, while the Producer Price Index (PPI) is forecast to fall 2.6% YoY from 3.0% in the previous reading. The weaker-than-expected data might weigh on the yellow metal, as China is one of the world's largest gold consumers. Additionally, the US PPI will be released later on Friday.

 

XAU/USD

Overview
Today last price 2033.38
Today Daily Change 9.75
Today Daily Change % 0.48
Today daily open 2023.63
 
Trends
Daily SMA20 2045.3
Daily SMA50 2015.28
Daily SMA100 1966.65
Daily SMA200 1963.33
 
Levels
Previous Daily High 2040.29
Previous Daily Low 2020.49
Previous Weekly High 2079.01
Previous Weekly Low 2024.43
Previous Monthly High 2144.48
Previous Monthly Low 1973.13
Daily Fibonacci 38.2% 2028.05
Daily Fibonacci 61.8% 2032.73
Daily Pivot Point S1 2015.98
Daily Pivot Point S2 2008.34
Daily Pivot Point S3 1996.18
Daily Pivot Point R1 2035.78
Daily Pivot Point R2 2047.94
Daily Pivot Point R3 2055.58

 


 

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 fluctuates near 1.0850 as markets assess Fed commentary

EUR/USD fluctuates near 1.0850 as markets assess Fed commentary

EUR/USD trades in a tight range at around 1.0850 on Tuesday. In the absence of high-tier data releases, the cautious market mood helps the USD hold its ground and limits the pair's upside. Meanwhile, investors continue to scrutinize comments from central bank officials.

EUR/USD News

GBP/USD stays in positive territory above 1.2700, awaits fresh catalysts

GBP/USD stays in positive territory above 1.2700, awaits fresh catalysts

GBP/USD struggles to stretch higher above 1.2700 on Tuesday as the mixed action in Wall Street supports the USD. Investors await fresh catalysts, with several Fed officials and BoE Governor Bailey set to speak later in the session. 

GBP/USD News

Gold rebounds to $2,430 as US yields edge lower

Gold rebounds to $2,430 as US yields edge lower

Gold gained traction and climbed to $2,430 area in the American session, turning positive on the day. The pullback in the benchmark 10-year US Treasury bond yield helps XAU/USD stage a rebound following the sharp retreat seen from the all-time high set at the weekly opening at $2,450.

Gold News

Shiba Inu price flashes buy signal, 25% rally likely Premium

Shiba Inu price flashes buy signal, 25% rally likely

Shiba Inu price has flipped bullish to the tune of the crypto market and breached key hurdles, showing signs of a potential rally. Investors looking to accumulate SHIB have a good opportunity to do so before the meme coin shoots up.

Read more

Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out Premium

Three fundamentals for the week: UK inflation, Fed minutes and Flash PMIs stand out

Sell in May and go away? That market adage seems outdated in the face of new highs for stocks and Gold. Optimism depends on the easing from central banks – and some clues are due this week.

Read more

Forex MAJORS

Cryptocurrencies

Signatures