Gold Price Forecast: XAU/USD retreats from above $1,800


  • The US Producer Price Index eased in November,  but it was not enough.
  • Market participants await the US Federal Reserve monetary policy decision next week.
  • The XAU/USD pair maintains its bullish potential intact, despite the lack of follow-through.

Spot gold jumped to $1,804.43 ahead of the US opening but quickly retreated to currently trade at around $1,797 a troy ounce.  The American Dollar remains on the back foot despite a dismal market mood, as the United States Producer Price Index (PPI) failed to impress. According to the US Bureau of Labor Statistics, inflation at wholesale levels rose at an annual pace of 7.4% in November, meeting market expectations. However, the core reading, which excludes volatile food and energy prices, was up by 6.2%, below the previous 6.7%, but above the 6% expected.

Demand for the US Dollar is limited ahead of the critical US Federal Reserve (Fed) monetary policy decision next week. The central bank may slow the pace of tightening and hike by 50 bps before pausing, ending the most aggressive cycle of its history. Nevertheless, speculative interest still sees a modest chance of another 75 bps hike amid resilient economic data.

XAU/USD technical perspective

XAU/USD trimmed its early weekly losses, and trades flat when compared to Monday’s opening. Still, it managed to post a higher low and a higher high, maintaining the bullish potential intact. The bright metal, however, is still unable to clear the psychological resistance at $1,800. Once above it, gold has the path clear towards the $1,850 price zone. A near-term support level comes at $1.780, while stronger buying interest is aligned at around $1,765.

XAU/USD

Overview
Today last price 1795.01
Today Daily Change 6.41
Today Daily Change % 0.36
Today daily open 1788.6
 
Trends
Daily SMA20 1765.93
Daily SMA50 1708.32
Daily SMA100 1717.31
Daily SMA200 1792.96
 
Levels
Previous Daily High 1794.93
Previous Daily Low 1781.44
Previous Weekly High 1804.52
Previous Weekly Low 1739.72
Previous Monthly High 1786.55
Previous Monthly Low 1616.69
Daily Fibonacci 38.2% 1789.78
Daily Fibonacci 61.8% 1786.59
Daily Pivot Point S1 1781.72
Daily Pivot Point S2 1774.83
Daily Pivot Point S3 1768.23
Daily Pivot Point R1 1795.21
Daily Pivot Point R2 1801.81
Daily Pivot Point R3 1808.7

 

 

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

AUD/USD failed just ahead of the 200-day SMA

AUD/USD failed just ahead of the 200-day SMA

Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.

AUD/USD News

EUR/USD met some decent resistance above 1.0700

EUR/USD met some decent resistance above 1.0700

EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.

EUR/USD News

Gold stays firm amid higher US yields as traders await US GDP data

Gold stays firm amid higher US yields as traders await US GDP data

Gold recovers from recent losses, buoyed by market interest despite a stronger US Dollar and higher US Treasury yields. De-escalation of Middle East tensions contributed to increased market stability, denting the appetite for Gold buying.

Gold News

Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30

Ethereum suffers slight pullback, Hong Kong spot ETH ETFs to begin trading on April 30

Ethereum suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.

Read more

Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data

Dow Jones Industrial Average hesitates on Wednesday as markets wait for key US data

The DJIA stumbled on Wednesday, falling from recent highs near 38,550.00 as investors ease off of Tuesday’s risk appetite. The index recovered as US data continues to vex financial markets that remain overwhelmingly focused on rate cuts from the US Fed.

Read more

Forex MAJORS

Cryptocurrencies

Signatures