Gold Price Forecast: XAU/USD stays in balance above $1,660 as DXY consolidates, Fed policy buzz


  • Gold price has gone dead cat as investors have sidelined ahead of the Fed policy.
  • The DXY is aiming to print a fresh two-week high above 110.30.
  • Investors should be prepared for a bumper rate hike by the Fed.

Gold price (XAU/USD) is displaying a lackluster performance as investors are awaiting the release of the monetary policy by the Federal Reserve (Fed). The precious metal is showing a volatility contraction of around $1,666.00. While the downside seems favored as the US dollar index aims to print a fresh two-week high above 110.30.

The gold prices don’t deserve support a worth penny as investors are now expecting a bigger-than-prior rate hike pattern. The Fed is escalating its interest rates by 75 basis points (bps) over the past two monetary meetings.

Price pressures have not displayed a justified response to the current pace of hiking borrowing rates by the Fed. Therefore, the Fed is expected to think out of the box and tight other quantitative tools along with a third consecutive 75 bps rate hike or so for a full percent rate hike.

An announcement of a mega rate hike will trigger the risk-off market mood. This will strengthen the DXY further and the market participants will ditch the risk-perceived assets.

Gold technical analysis

Gold prices have turned sideways after delivering a downside break of the Ascending Triangle whose upward-sloping trendline is placed from the previous week’s low at $1,654.17 while the horizontal resistance is plotted from Friday’s high at $1,680.39.

The 20-period Exponential Moving Average (EMA) at $1,666.56 acts as significant resistance for the bulls. Also, the 50-EMA at $1,668.90 is declining, which adds to the downside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is on the verge of shifting into the bearish range of 20.00-40.00, which will trigger a fresh downside rally.

Gold hourly chart

XAU/USD

Overview
Today last price 1665.03
Today Daily Change 0.09
Today Daily Change % 0.01
Today daily open 1664.94
 
Trends
Daily SMA20 1709.6
Daily SMA50 1734.87
Daily SMA100 1781.6
Daily SMA200 1830.18
 
Levels
Previous Daily High 1679.49
Previous Daily Low 1660.03
Previous Weekly High 1735.17
Previous Weekly Low 1654.17
Previous Monthly High 1807.93
Previous Monthly Low 1709.68
Daily Fibonacci 38.2% 1667.46
Daily Fibonacci 61.8% 1672.06
Daily Pivot Point S1 1656.82
Daily Pivot Point S2 1648.69
Daily Pivot Point S3 1637.36
Daily Pivot Point R1 1676.28
Daily Pivot Point R2 1687.61
Daily Pivot Point R3 1695.74

 

 

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD eyes are on critical daily dynamic support

AUD/USD eyes are on critical daily dynamic support

AUD/USD bears eye a 50% mean reversion in the lower quarter of the 0.6700s. A break of the supporting trendline and subsequent test of  0.6640/50 could be a significant bearish development.

AUDUSD News

EUR/USD aims for 1.0550 despite upbeat US NFP data, Eurozone Retail Sales eyed

EUR/USD aims for 1.0550 despite upbeat US NFP data, Eurozone Retail Sales eyed

The EUR/USD pair is hovering around a fresh five-month high at 1.0545 in the early Asian session. The major currency pair is expected to extend its rally to near 1.0550 ahead amid an upbeat market mood.

EUR/USD News

Gold struggles around $1,800 ahead of ISM Services PMI data

Gold struggles around $1,800 ahead of ISM Services PMI data

Gold price is facing immense pressure in conquering the round-level resistance of $1,800.00 in the early Tokyo session. The precious metal is highly expected to display more gains ahead and may extend towards a fresh three-month high at $1,824.63.

Gold News

AVAX: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX price has breached an inverse head-and-shoulders setup, hinting at a 13% upswing. AVAX price has broken out of a critical hurdle and pattern, signaling the start of a quick run-up. AVAX price action created an inverse head-and-shoulder setup.

Read more

The Yen, Payrolls, and the Oil price

The Yen, Payrolls, and the Oil price

US stocks wrapped their second straight week of gains, even if stocks slipped on Friday on the back of better-than-expected US Payrolls data.We have been amazed by the resilience in risky assets of late. This year has seen some incredible macro themes.

Read more

Forex MAJORS

Cryptocurrencies

Signatures