Gold Price Forecast: XAU/USD to kiss $1,660 in no time amid vulnerable DXY, PMIs grab focus

Gold price is advancing towards $1,660 amid an upbeat market mood.
A Fed policymaker adopted a less-hawkish approach to interest rate guidance.
The returns on 10-year US bonds have trimmed to 2.20% amid a decline in hawkish Fed bets.

Sagar Dua FXStreet

Gold price (XAU/USD) is marching towards the immediate hurdle of $1,660.00 sharply as the positive market sentiment witnessed on Friday is expected to continue further. The precious metal picked significant bids around the two-year low at $1,614.85 and displayed a juggernaut rally, which may advance further.

The risk-on impulse shot vigorously after the Federal Reserve (Fed) policymaker supported a slowdown in the current pace of hiking interest rates to avoid sending the economy into an ‘unforced downturn’. San Francisco Fed President Mary Daly cited that too sharp increment in interest rates has trimmed the consensus for growth prospects. Therefore, a slowdown in the rate hike pace would lift some pressure on the economy. A less-hawkish commentary from a Fed policymaker in a very long time lifted the market sentiment and the S&P500 soared by more than 2.60%.

Meanwhile, the US dollar index (DXY) displayed a vertical fall and settled below the 112.00 cushion. The 10-year benchmark US Treasury yields declined to 4.22% as chances for a 75 basis point (bps) rate hike by the Fed have trimmed to 88%.

On Monday, investors will focus on the release of the S&P PMIs data. The Manufacturing PMI is expected to decline to 51.2 vs. the prior release of 52.0 while the Services PMI may drop to 49.2 from 49.3 reported earlier.

Gold technical analysis

Gold price has witnessed a stellar buying interest after testing the demand zone placed in a $1,614.85-1,621.60 range. The precious metal has crossed the 50-and 200-Exponential Moving Averages (EMAs) at $1,637.50 and $1,660.00 respectively in no time, which signals the strength of the gold bulls.

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

Gold hourly chart

XAU/USD

Overview
Today last price	1657.35
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1657.35

Trends
Daily SMA20	1665.97
Daily SMA50	1696.19
Daily SMA100	1739.67
Daily SMA200	1814.23

Levels
Previous Daily High	1658.24
Previous Daily Low	1617.35
Previous Weekly High	1668.53
Previous Weekly Low	1617.35
Previous Monthly High	1735.17
Previous Monthly Low	1614.85
Daily Fibonacci 38.2%	1642.62
Daily Fibonacci 61.8%	1632.97
Daily Pivot Point S1	1630.39
Daily Pivot Point S2	1603.42
Daily Pivot Point S3	1589.5
Daily Pivot Point R1	1671.28
Daily Pivot Point R2	1685.2
Daily Pivot Point R3	1712.17

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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