Gold Price Forecast: XAU/USD surges to near $1,820 on soaring market mood, Fed in focus

Gold price is facing a hurdle around $1,820.00, however, the recovery looks firmer amid a risk-on mood.
Investors have started accepting the fact that a 75 bps rate hike is imminent.
The 10-year US Treasury yields have tumbled sharply to 3.42%.

Sagar Dua FXStreet

Gold price (XAU/USD) has moved northwards firmly after hitting a low of $1,805.20 in the late New York session. The precious metal has displayed some signs of exhaustion and the asset is expected to overstep $1,820.00 going forward.

The odds of a 75 basis point (bps) rate hike by the Federal Reserve (Fed) have improved significantly and investors have understood the fact that an extreme rate hike is highly required to tame the soaring inflation. Therefore, investors are ignoring the rate hike-associated uncertainty and shifting their funds from the US dollar index (DXY) to gold prices and other risk-sensitive currencies. As per the CME Fedwatch tool, the chances of announcing a rate hike of 75 basis points (bps) are 99%.

A follow-up decline has been witnessed in the DXY after a weak open. The DXY has tumbled to 105.20 but is likely to find a cushion around 105.00. Also, the 10-year US Treasury yields have eased around 2% and have slipped to 3.42%.

Gold technical analysis

On an intraday sale, the downside move in the gold prices has displayed a loss of momentum, which has pushed the precious metal higher to near $1,820.00. The Relative Strength Index (RSI) (14) didn’t align with the gold prices and showed a higher low while the asset recorded a lower low. The precious metal has firmly crossed the 50-period Exponential Moving Average (EMA) at $1,813.82, which adds to the upside filters.

Gold intraday chart

XAU/USD

Overview
Today last price	1815.77
Today Daily Change	7.35
Today Daily Change %	0.41
Today daily open	1808.42

Trends
Daily SMA20	1846.82
Daily SMA50	1879.56
Daily SMA100	1889.7
Daily SMA200	1842.21

Levels
Previous Daily High	1831.71
Previous Daily Low	1805.11
Previous Weekly High	1876.01
Previous Weekly Low	1825.1
Previous Monthly High	1909.83
Previous Monthly Low	1786.94
Daily Fibonacci 38.2%	1815.27
Daily Fibonacci 61.8%	1821.55
Daily Pivot Point S1	1798.45
Daily Pivot Point S2	1788.48
Daily Pivot Point S3	1771.85
Daily Pivot Point R1	1825.05
Daily Pivot Point R2	1841.68
Daily Pivot Point R3	1851.65

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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