Gold Price Forecast: XAU/USD turns sideways after a decline from $1,690, Fed’s guidance spoils mood


  • Gold price has turned sideways after a solid volatile session amid Fed monetary policy announcement.
  • Fed’s hawkish guidance on interest rates has spoiled the market mood.
  • The DXY is advancing to recapture its fresh two-decade high at 111.58.

Gold price (XAU/USD) is displaying back-and-forth moves in a narrow range of $1,670.33-1,674.78 in the early Tokyo session. The precious metal is having a sigh of relief after a volatile session amid Federal Reserve (Fed) monetary policy meeting. A firmer rebound from around a two-year low at $1,654.00, followed by an extreme sell-off around $1,690.00 and now a volatility contraction is building a base for a decisive move ahead.

Fed chair Jerome Powell has hiked the interest rates as expected by 75 basis points (bps), escalating it to 3.00-3.25% with the old objective of bringing price stability. However, the roadmap plotted to tame the roaring inflation through policy tightening has spilled blood on Wall Street.

With the ultimate target of 4.6% terminal rates to combat inflationary pressures and reaching 4.4% by next year, the roadmap for wiping out add-over inflation seems gloomy for the growth outlook, employment opportunities, and wage rates.

Meanwhile, the US dollar index (DXY) is aiming to recapture the fresh two-decade high at 111.58, recorded on Wednesday. The asset is expected to sustain at elevated levels until signs of legitimate decline in the Consumer Price Index (CPI).

Gold technical analysis

Gold price is oscillating in a tad wider range of $1,654.00-1,690.50 on an hourly scale. The precious metal is expected to display a lackluster performance until the volatility indicators get cooled-off. The 50-period Exponential Moving Average (EMA) is overlapping with the asset price, which signals a consolidation ahead.

Also, the Relative Strength Index (RSI) (14) has shifted back into the 40.00-60.00, which seeks further trigger for a decisive move.

Gold hourly chart

XAU/USD

Overview
Today last price 1670.75
Today Daily Change 5.81
Today Daily Change % 0.35
Today daily open 1664.94
 
Trends
Daily SMA20 1709.6
Daily SMA50 1734.87
Daily SMA100 1781.6
Daily SMA200 1830.18
 
Levels
Previous Daily High 1679.49
Previous Daily Low 1660.03
Previous Weekly High 1735.17
Previous Weekly Low 1654.17
Previous Monthly High 1807.93
Previous Monthly Low 1709.68
Daily Fibonacci 38.2% 1667.46
Daily Fibonacci 61.8% 1672.06
Daily Pivot Point S1 1656.82
Daily Pivot Point S2 1648.69
Daily Pivot Point S3 1637.36
Daily Pivot Point R1 1676.28
Daily Pivot Point R2 1687.61
Daily Pivot Point R3 1695.74

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends rebound to 1.0500 amid US Dollar weakness

EUR/USD extends rebound to 1.0500 amid US Dollar weakness

EUR/USD preserves its recovery momentum and trades near 1.0500 in the European session. Despite the risk-averse market atmosphere, the US Dollar is struggling to find demand ahead of mid-tier data releases, helping the pair hold in positive territory.

EUR/USD News

GBP/USD clings to recovery gains above 1.2150

GBP/USD clings to recovery gains above 1.2150

GBP/USD gained traction and climbed above 1.2150 during the European trading hours. The modest US Dollar weakness provides a boost to the pair as the market focus shifts to third-quarter Unit Labor Costs data from the United States.

GBPUSD News

Gold price struggles to gain traction, holds above $1,770

Gold price struggles to gain traction, holds above $1,770

Gold price is having a difficult time gathering bullish momentum and continuing to fluctuate in a tight range slightly above $1,770. The benchmark 10-year US Treasury bond yield holds steady above 3.5% ahead of US data, not allowing XAU/USD to find direction.

Gold News

JP Morgan joins forces with Ripple partner in the UAE, what this means for XRP price

JP Morgan joins forces with Ripple partner in the UAE, what this means for XRP price

JP Morgan will work alongside Al Fardan Exchange LLC in the United Arab Emirates (UAE) to power faster transaction settlement and transfers in fiat currencies.

Read more

Are global rate markets too complacent about central bank intentions for 2023?

Are global rate markets too complacent about central bank intentions for 2023?

Markets and economists are split between a 25 bps and a 50 bps rate hike (bringing the key rate to 4% or 4.25%) but are eager to hear about the Bank of Canada’s future guidance.

Read more

Forex MAJORS

Cryptocurrencies

Signatures