Gold Price Forecast: XAU/USD to drift lower again towards $1,580 – TDS

FXStreet Insights Team FXStreet

Gold extended gains smartly past $1,700. Nevertheless, strategists at TD Securities expect XAU/USD to reverse recent rally towards $1,580.

Firm resistance aligns at $1,763-73

“The yellow metal is trading at the 50-day moving average, which we judge should serve as the first level of resistance. If there is sufficient momentum to settle materially above that level, the 100-day moving average/Fib ($1,763-73) points should be an even firmer resistance zone.”

“We see gold losing steam and again drifting toward our target of $1,580 over the coming months, as the Fed continues to stick to its hawkish plan to move the Fed Funds above the 4.5% mark and keep rates in restrictive mode until inflation is licked. Or at least until such time, there is a high probability that inflation can move close to target. This will take well into 2023 or beyond.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD flirts with 0.7000, lowest since early August amid bullish USD

AUD/USD hits a fresh low since early August during the Asian session on Friday and looks vulnerable near 0.7000 after breaking below the 200-day SMA overnight. Against the backdrop of the hawkish Fed, a two-day rally in oil prices revives inflation fears and continues to push US bond yields to multi-year highs. Adding to this, geopolitical risks lift the US Dollar to a two-month high, overshadowing RBA rate hike bets and weighing on the pair.

USD/JPY pulls back from three-week high after failing near 159.00

USD/JPY edges lower during the Asian session on Friday, stalling its recent strong move to a three-week high of 159.00 as Japanese Yen bears turn cautious amid intervention fears. Meanwhile, the US Dollar retains a strong bullish undertone as the Fed's hawkish outlook and oil-driven inflation fears continue to push US bond yields to multi-year peaks. Furthermore, the BoJ's dovish rate hike last week might cap JPY and support spot prices.

Gold remains below $4,300 amid hawkish Fed, elevated US bond yields, and bullish USD

Gold struggles to capitalize on the previous day's modest rebound from the weekly low, trading below $4,300 during the Asian session on Friday amid a bullish US Dollar. The hawkish Fed, along with energy-driven inflation fears, lifts US bond yields to multi-year highs and helps the USD preserve its gains to a two-month high. This, in turn, acts as a headwind for the non-yielding bullion and warrants caution for bulls.

Crypto exchange Bitget hacked for over $350 million

Cryptocurrency exchange Bitget has been hacked for over $351 million after attackers compromised a few of its hot wallets. The hack was first flagged across several onchain tools, which initially noted over $180 million in assets moving from a few of the exchange's wallets to unidentified addresses.

Treasury announces second oversized bond buyback as it tries to put a lid on yields

The Treasury Department will buy back another $6 billion in long-term Treasuries as it continues efforts to tamp down rising yields. Treasury Secretary Scott Bessent announced this second expanded buyback on Wednesday.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.