Gold Price Forecast: XAU/USD retraces recent losses, rises to near $2,170


  • Gold price edges higher on subdued Greenback on Monday.
  • The US Dollar receives downward pressure on speculations of the Fed initiating rate cuts from June.
  • Gold price could face challenge as US Treasury yields move lower on improved risk sentiment.

Gold price rises to near $2,170 per troy ounce, reclaiming losses from the previous two sessions. The uptick in Gold prices can be attributed to a weaker US Dollar (USD), which is influenced by the dovish sentiment surrounding the Federal Reserve's stance on interest rate trajectory. Market sentiment leans toward the Fed initiating interest rate cuts starting in June, and a softer Greenback has bolstered the appeal of bullion.

During a press conference, Federal Reserve Chair Jerome Powell noted that an unexpected rise in unemployment could lead the central bank to consider lowering interest rates. Powell also reassured markets that the Fed would not hastily respond to consecutive months of elevated inflation figures. Furthermore, Gold prices have been buoyed by recent indications from Fed policymakers that they still anticipate reducing interest rates by three-quarters of a percentage point by the end of 2024, despite recent high inflation readings.

Indeed, the decline in US yields indicates a shift in investor sentiment toward US Treasury bonds, potentially posing a challenge for non-yielding assets like Gold. With the 2-year and 10-year yields on US Treasury bonds holding steady at 4.60% and 4.21%, respectively. Investors may find the relative safety and stability of bonds more attractive compared to Gold.

The upcoming US inflation readings are expected to have a significant impact on the prices of the precious metal. Gold traders will closely monitor the release of Gross Domestic Product (GDP) data for the fourth quarter of 2023 and the Personal Consumption Expenditures (PCE) price index report from the United States (US) during the week, as these indicators can provide insights into inflationary pressures and influence Gold prices accordingly.

XAU/USD

Overview
Today last price 2168.38
Today Daily Change 2.97
Today Daily Change % 0.14
Today daily open 2165.41
 
Trends
Daily SMA20 2131.96
Daily SMA50 2067.54
Daily SMA100 2042.38
Daily SMA200 1984.11
 
Levels
Previous Daily High 2186.16
Previous Daily Low 2157.17
Previous Weekly High 2223.22
Previous Weekly Low 2146.16
Previous Monthly High 2065.49
Previous Monthly Low 1984.26
Daily Fibonacci 38.2% 2168.24
Daily Fibonacci 61.8% 2175.09
Daily Pivot Point S1 2153
Daily Pivot Point S2 2140.59
Daily Pivot Point S3 2124.01
Daily Pivot Point R1 2181.99
Daily Pivot Point R2 2198.57
Daily Pivot Point R3 2210.98

 

 

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