Gold Price News and Forecast: XAU/USD eyes $1980 amid weaker dollar

FXStreet Team FXStreet

Gold Price Forecast: XAU/USD eyes $1980 amid weaker dollar, focus shifts to Wednesday’s FOMC

Gold (XAU/USD) built on Monday’s 1% rally after a steady start on Tuesday, reaching fresh nine-day highs at $1967. The US dollar was dumped across the board amid an improvement in the risk-sentiment, courtesy of the vaccine hopes, upbeat Chinese data and renewed US-Sino trade optimism. The Chinese activity numbers came in stronger than the estimates, suggesting the economic recovery is gathering steam. Also, news that China extended tariffs exemptions on some of the US good imports further fuelled the market optimism.

Gold Price Analysis: Nears descending triangle resistance

Having jumped 0.89% on Monday, gold is now closing on the upper end of the four-week-long descending triangle pattern seen on the daily chart. A close above the triangle resistance, currently at $1,970, would imply revival of the broader uptrend and expose the record high of $2,075 reached on Aug. 7. On the way higher, the yellow metal may encounter resistance at $$1,992 (Sept. 1 high) and $2,016 (Aug. 18 high).

A breakout looks likely as the MACD histogram has charted higher lows, a sign of weakening of downward momentum. On the downside, the triangle support at $1,909 is the level to beat for the bears. At press time, gold is trading near $1,955 per ounce.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD continues its rise as Dollar retreats on Fed action and soft data

EUR/USD advances during the North American on Thursday up 0.41% after the Fed decided to cut rates, alongside the release of weaker than expected job data in the United States. The pair trades at 1.1742 after bouncing off daily lows of 1.1682.

GBP/USD ticks north beyond 1.3400 after US employment data

GBP/USD ticks beyond 1.3400 in the American session on Thursday, as the US Dollar is back on the losing side, following worse-than-anticipated US employment-related figures. The US Federal Reserve delivered a rate cut at its December meeting, in line with the market’s expectations.

Gold on its way to retest record highs

Broad US Dollar weakness helps the bright metal to extend weekly gains. The XAU/USD pair trades above $4,250, its highest for the week and not far from its record high in the $4,380 region. The Greenback came under selling pressure on Wednesday following the Federal Reserve's monetary policy announcement, further pressured on Thursday by softer-than-anticipated United States employment data.

XRP poised for further decline as retail demand narrows

Ripple is trading above $2.00 at the time of writing on Thursday, weighed down by increasing selling pressure in the broader cryptocurrency market. Short-term technical signals underpin the bearish outlook, which could accelerate the downtrend toward April’s low of $1.61.

FOMC Summary: A split cut and a clear shift toward caution

The Federal Reserve (Fed) went ahead with a 25 basis points rate cut, taking the target range to 3.50–3.75%. But the tone around the decision mattered just as much as the move.

Solana dips as hawkish Fed cuts dampen market sentiment

Solana (SOL) price is trading below $130 at the time of writing on Thursday, after being rejected at the upper boundary of its falling wedge pattern. The broader market weakness following the Federal Reserve’s hawkish rate cut has added to downside momentum.