Gold Price Forecast: XAU/USD consolidates weekly gains, with sight on $2,600 and beyond
Gold price consolidates below record highs at $2,600 early Friday, as Fedspeak awaited.
As traders digest the Fed’s big rate cut, the US Dollar licks wounds with Treasury bond yields.
Gold buyers stay hopeful amid the daily bullish RSI, as $2,600 resistance appears at risk.
Gold price is looking to build on the previous day’s rebound early Friday, consolidating weekly gains amid the overnight weakness in the US Dollar alongside the US Treasury bond yields. Traders now await the speeches from US Federal Reserve monetary policymakers for fresh hints on the central bank’s path forward on interest rates.
Gold price takes a breather, with Fedspeak eyed
The USD has paused its recent downside, as markets turn risk-averse and buck the Wall Street rally after the People’s Bank of China disappointed by leaving the mortgage lending rate unchanged. Markets expected the Chinese central bank to cut the Loan Prime Rates amid growing economic slowdown concerns.
A stabilizing US Dollar seems to caution Gold buyers but the downside remains cushioned amid increased haven demand for the traditional safety asset on China worries. They also remain wary and refrain from placing fresh bets, anticipating the Bank of Japan’s policy announcements.
Although the BoJ is widely expected to leave interest rates unchanged, any surprise could trigger the USD/JPY pair-led US Dollar volatility, eventually impacting the USD-denominated Gold price.
That said, Gold price could witness a brief correction, if traders resort to profit-taking due to the recent rally and ahead of next week’s US macro data and Fed Chair Jerome Powell’s appearance.
On Thursday, the bright metal staged a solid rebound toward the all-time high of $2,600 but fell slightly short of it amid the two-way swings seen in the US Dollar, as traders digested the dovish Fed outlook amid the return of risk appetite and mixed US Jobless Claims and Existing Home Sales data.
Gold price technical analysis: daily chart
As observed on the daily chart, the Gold price outlook appears constructive in the short term as long as the crucial support at $2,532 is defended.
That level is the confluence of the August 20 high and the 21-day Simple Moving Average (SMA).
The 14-day Relative Strength Index (RSI) has turned flat while staying firm above the 50 level, currently near 66.50, adding credence to the bullish potential.
The record high at $2,600 will be challenged if Gold price regains the upside traction. Acceptance above that level will call for a test of the $2,650 psychological barrier.
On the downside, Gold sellers need to crack the $2,550 demand area for the correction to extend toward the abovementioned key support at $2,532.
A sustained break below that level will likely extend the decline toward the rising trendline support at $2,512.
Gold Price Forecast: XAU/USD consolidates weekly gains, with sight on $2,600 and beyond
Gold price is looking to build on the previous day’s rebound early Friday, consolidating weekly gains amid the overnight weakness in the US Dollar alongside the US Treasury bond yields. Traders now await the speeches from US Federal Reserve monetary policymakers for fresh hints on the central bank’s path forward on interest rates.
Gold price takes a breather, with Fedspeak eyed
The USD has paused its recent downside, as markets turn risk-averse and buck the Wall Street rally after the People’s Bank of China disappointed by leaving the mortgage lending rate unchanged. Markets expected the Chinese central bank to cut the Loan Prime Rates amid growing economic slowdown concerns.
A stabilizing US Dollar seems to caution Gold buyers but the downside remains cushioned amid increased haven demand for the traditional safety asset on China worries. They also remain wary and refrain from placing fresh bets, anticipating the Bank of Japan’s policy announcements.
Although the BoJ is widely expected to leave interest rates unchanged, any surprise could trigger the USD/JPY pair-led US Dollar volatility, eventually impacting the USD-denominated Gold price.
That said, Gold price could witness a brief correction, if traders resort to profit-taking due to the recent rally and ahead of next week’s US macro data and Fed Chair Jerome Powell’s appearance.
On Thursday, the bright metal staged a solid rebound toward the all-time high of $2,600 but fell slightly short of it amid the two-way swings seen in the US Dollar, as traders digested the dovish Fed outlook amid the return of risk appetite and mixed US Jobless Claims and Existing Home Sales data.
Gold price technical analysis: daily chart
As observed on the daily chart, the Gold price outlook appears constructive in the short term as long as the crucial support at $2,532 is defended.
That level is the confluence of the August 20 high and the 21-day Simple Moving Average (SMA).
The 14-day Relative Strength Index (RSI) has turned flat while staying firm above the 50 level, currently near 66.50, adding credence to the bullish potential.
The record high at $2,600 will be challenged if Gold price regains the upside traction. Acceptance above that level will call for a test of the $2,650 psychological barrier.
On the downside, Gold sellers need to crack the $2,550 demand area for the correction to extend toward the abovementioned key support at $2,532.
A sustained break below that level will likely extend the decline toward the rising trendline support at $2,512.
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