Gold Price Forecast: XAU/USD struggles to extend above $1,820 decisively ahead of US ISM data

Gold price is facing pressure to surpass the immediate hurdle of $1,823.00.
Less trading activity is expected amid the global market's festive mood.
Going forward, investors will keep an eye on US ISM Manufacturing PMI data.

Sagar Dua FXStreet

Gold price (XAU/USD) struggles to extend its upside above the immediate resistance of $1,823.00. The precious metal is expected to remain lackluster amid the festive mood for New Year celebrations. Therefore, trading activity will remain quiet in various nations.

The US Dollar Index (DXY) settled the last trading session on a weak note after delivering a south-side break of the consolidation formed in a 103.47-104.57 range. The USD Index dropped to near the round-level support of 103.00. Meanwhile, S&P500 witnessed some sell-off on Friday as investors turned cautious about the CY2023 outlook, portraying ambiguity in the risk impulse.

Going forward, investors will focus on the United States ISM Manufacturing PMI data (Dec), which will release on Wednesday. Per the consensus, the ISM Manufacturing data will escalate to 49.6 vs. the former release of 49.0. Apart from that, investors will keep New Orders Index on the radar, which might climb to 48.1 against the prior release of 47.2. A decent improvement in demand anticipants may also support the US Dollar Index.

Gold technical analysis

Gold price is auctioning in an Ascending Triangle chart pattern on a four-hour scale. The horizontal resistance of the aforementioned chart pattern is placed from December 13 high at $1,824.55, while the upward-sloping trendline is plotted from December 16 low at $1,774.36.

Advancing 20-and 50-period Exponential Moving Averages (EMAs) at $1,814.77 and $1,807.43 add to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00 from the 40.00-60.00 range, which indicates more upside ahead.

Gold four-hour chart

XAU/USD

Overview
Today last price	1823.76
Today Daily Change	0.20
Today Daily Change %	0.01
Today daily open	1823.56

Trends
Daily SMA20	1796.88
Daily SMA50	1749.84
Daily SMA100	1723.02
Daily SMA200	1780.36

Levels
Previous Daily High	1826.12
Previous Daily Low	1813.51
Previous Weekly High	1833.38
Previous Weekly Low	1797.11
Previous Monthly High	1833.38
Previous Monthly Low	1765.89
Daily Fibonacci 38.2%	1821.3
Daily Fibonacci 61.8%	1818.33
Daily Pivot Point S1	1816.01
Daily Pivot Point S2	1808.45
Daily Pivot Point S3	1803.4
Daily Pivot Point R1	1828.62
Daily Pivot Point R2	1833.67
Daily Pivot Point R3	1841.23

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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