Gold Price Forecast: XAU/USD reverses intraday losses from $1630, US Durable Goods Orders buzz


  • Gold prices have rebounded firmly from $1,630.00, supporting a further pullback move.
  • The risk-off market mood pushed the DXY above 114.50.
  • Weaker forecasts for US Durable Goods Orders data will restrict the DXY’s upside.

Gold price (XAU/USD) has recovered the major portion of the losses recorded in the Tokyo session. The precious metal declined sharply to near $1,630.00 but recovered firmly and is indicating a formation of buying tail, which indicates a strong responsive buying structure. The yellow metal is attempting to shift into the prior balanced area placed in a narrow range of $1,640.00-1,649.06.

Meanwhile, the US dollar index (DXY) moved sharply to 114.52 as the risk profile turned sour on China’s leader Xi Jinping's house arrest and the Russian Federation’s warning of a nuclear attack in retaliation to western sanctions. The G-7 cartel is aiming to cripple the Russian economy by enforcing a spree of western sanctions so that that trading structure could get demolished.

The firmer move by the DXY towards 114.52 has also picked offers too ahead of US Durable Goods Orders data. As per the consensus, the economic data will decline by 1.1% against the prior decline of 0.1%. The impact will mainly come from weaker demand for gasoline and a 20 basis point (bps) decline in the headline Consumer Price Index (CPI) in the August reading.

Gold technical analysis

On an hourly scale, the gold prices are attempting to hit the 20-period Exponential Moving Average (EMA) at $1,650.54. If the precious metal manages to overstep the 20-EMA, it will find major barricades around the horizontal resistance placed from September 16 low at $1,654.41.

The Relative Strength Index (RSI) (14) is oscillating in a 20.00-40.00 range, which indicates that the downside momentum is still intact.

Gold hourly chart

XAU/USD

Overview
Today last price 1640.41
Today Daily Change -4.25
Today Daily Change % -0.26
Today daily open 1644.66
 
Trends
Daily SMA20 1696.71
Daily SMA50 1731.6
Daily SMA100 1775.07
Daily SMA200 1828.38
 
Levels
Previous Daily High 1675.92
Previous Daily Low 1639.85
Previous Weekly High 1688.11
Previous Weekly Low 1639.85
Previous Monthly High 1807.93
Previous Monthly Low 1709.68
Daily Fibonacci 38.2% 1653.63
Daily Fibonacci 61.8% 1662.14
Daily Pivot Point S1 1631.03
Daily Pivot Point S2 1617.41
Daily Pivot Point S3 1594.96
Daily Pivot Point R1 1667.1
Daily Pivot Point R2 1689.55
Daily Pivot Point R3 1703.17

 

 

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