Gold Price Forecast: XAU/USD to extend its rise on a break above $1,818


Gold is changing hands above $1,800, benefiting from the upbeat market mood. As FXStreet’s Haresh Menghani notes, the bull-bear tug-of-war continues while focus remains on US CPI.

Dips below the $1,800 mark to find support near the $1,792-90 area

“A positive tone around the US Treasury bond yields might keep a lid on any further gains. Investors might also refrain from placing any aggressive bets, rather prefer to wait on the sidelines ahead of the latest US consumer inflation figures, due later today. This will be followed by Fed Chair Jerome Powell's semi-annual congressional testimony on Wednesday and Thursday, which will be closely watched for his response to the inflation figures. This should influence market expectations about the Fed's near-term monetary policy outlook and play a key role in determining the next leg of a directional move for the metal.”

“It will still be prudent to wait for a sustained move beyond the monthly swing highs, around the $1,818 region, before positioning for any further appreciating move. The commodity might then accelerate the momentum towards challenging the very important 200-day SMA, around the $1,828-29 zone. Some follow-through buying will be seen as a fresh trigger for bullish traders and push the yellow metal further beyond an intermediate barrier, around the $1,852-55 region, towards testing the next major hurdle near the $1,870 level.”

“Dips below the $1,800 mark might continue to find decent support near the $1,792-90 area, which should act as a key pivotal point for intraday traders. A convincing break below might prompt some technical selling and pave the way for a slide towards the $1,780-78 support zone.” 

“Some follow-through selling below the $1,775 level will negate any near-term positive bias and turn the commodity vulnerable. The next relevant support is pegged near the $1,762-60 region, below which the XAU/USD could slide back to retest June monthly swing lows, around the $1,750 area.”

 

Share: Feed news

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.

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays on the back foot and trades in negative territory below 1.0700 as the US Dollar benefits from upbeat data in the American session. S&P Global reported that the economic activity in the US private sector continued to expand at a robust pace in June.

EUR/USD News

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD remains under bearish pressure and trades at its lowest level since mid-May below 1.2650. The stronger-than-forecast Manufacturing and Services PMI data from the US helps the USD hold its ground and causes the pair to stretch lower.

GBP/USD News

Gold drops below $2,340 as US yields rebound

Gold drops below $2,340 as US yields rebound

Gold loses its traction and trades deep in the red below $2,340 in the second half of the day on Friday. The benchmark 10-year US Treasury bond yield pushes higher following the upbeat PMI data from the US, weighing on XAU/USD.

Gold News

Bitcoin retraces to crucial support

Bitcoin retraces to crucial support

Bitcoin price encounters resistance at weekly highs before retracing to seek support at a crucial level, while Ethereum and Ripple align closely with Bitcoin's movements, gearing up to surpass resistance barriers and embark on upward rallies.

Read more

Week ahead – US PCE inflation the highlight of a relatively light agenda

Week ahead – US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures