Gold Price Forecast: XAU/USD needs acceptance above $2,740 to sustain the uptrend
Gold price turns south after facing rejection once again above $2,740 on Thursday.
The US Dollar licks wounds with Treasury bond yields amid a mixed market mood.
Technically, Gold price remains a ‘buy-the-dips’ trade, as range play is set to extend.
Gold price is on the back foot early Friday, as sellers return on a failure to find a strong foothold above the $2,740 static resistance yet again. Attention now turns toward a fresh batch of US economic data and speeches from US Federal Reserve (Fed) policymakers for a fresh direction impetus in Gold price.
Gold price eyes fresh US data for a range breakout
The Gold price action is divided between the increased expectations that the Fed will opt for a less aggressive easing policy in the coming months and uncertainty around the US presidential elections combined with rife Middle East geopolitical concerns.
Additionally, the US corporate earnings reports also play a pivot role in driving risk sentiment, and hence the safe-haven US Dollar (USD) and Gold price.
That said, the upcoming US Durable Goods Orders and preliminary Michigan Consumer Sentiment data could provide fresh hints on the state of the US economy, which could impact the Fed rate cut expectations and the US Dollar’s value in the near term.
Thus, Gold price could see a fresh direction move on the US data releases and a speech by Boston Fed president Susan Collins.
On Thursday, Gold price snapped its correction and rebounded 1% as the USD pulled back sharply with the US Treasury bond yields, as risk flows remained on Tesla’s earnings optimism while uncertainty in the run-up to the US election provided a fresh lift to Gold price.
Markets are pricing in a victory for the Republican nominee and the former US President Donald Trump in the presidential race, and his trade and fiscal policies are seen as inflationary, for which the Gold price could emerge as the go-to asset as a hedge against inflation.
Gold price technical analysis: Daily chart
Gold price has turned south once again to test the previous resistance now support at $2,723, the 23.6% Fibonacci Retracement (Fibo) level of the latest record rally from the October 10 low of $2,604 to an all-time high of $2,759.
A failure to defend that level on a daily candlestick closing basis could accelerate the declines toward the 38.2% Fibo level of the same ascent at $2,700.
Further south, the 50% Fibo support at $2,681 will be put to the test, near where the 21-day Simple Moving Average (SMA) closes in.
On the flip side, acceptance above the $2,740 static resistance is critical to resuming a sustained uptrend.
Gold buyers would then take on the $2,750 psychological barrier. The record high of $2,759 will be next on buyers’ radars.
The 14-day Relative Strength Index (RSI) is pointing lower but holds comfortable above the 50 level, currently trading near 65, suggesting that any decline in Gold price could be seen as a good dip-buying opportunity.
Gold Price Forecast: XAU/USD needs acceptance above $2,740 to sustain the uptrend
Gold price is on the back foot early Friday, as sellers return on a failure to find a strong foothold above the $2,740 static resistance yet again. Attention now turns toward a fresh batch of US economic data and speeches from US Federal Reserve (Fed) policymakers for a fresh direction impetus in Gold price.
Gold price eyes fresh US data for a range breakout
The Gold price action is divided between the increased expectations that the Fed will opt for a less aggressive easing policy in the coming months and uncertainty around the US presidential elections combined with rife Middle East geopolitical concerns.
Additionally, the US corporate earnings reports also play a pivot role in driving risk sentiment, and hence the safe-haven US Dollar (USD) and Gold price.
That said, the upcoming US Durable Goods Orders and preliminary Michigan Consumer Sentiment data could provide fresh hints on the state of the US economy, which could impact the Fed rate cut expectations and the US Dollar’s value in the near term.
Thus, Gold price could see a fresh direction move on the US data releases and a speech by Boston Fed president Susan Collins.
On Thursday, Gold price snapped its correction and rebounded 1% as the USD pulled back sharply with the US Treasury bond yields, as risk flows remained on Tesla’s earnings optimism while uncertainty in the run-up to the US election provided a fresh lift to Gold price.
Markets are pricing in a victory for the Republican nominee and the former US President Donald Trump in the presidential race, and his trade and fiscal policies are seen as inflationary, for which the Gold price could emerge as the go-to asset as a hedge against inflation.
Gold price technical analysis: Daily chart
Gold price has turned south once again to test the previous resistance now support at $2,723, the 23.6% Fibonacci Retracement (Fibo) level of the latest record rally from the October 10 low of $2,604 to an all-time high of $2,759.
A failure to defend that level on a daily candlestick closing basis could accelerate the declines toward the 38.2% Fibo level of the same ascent at $2,700.
Further south, the 50% Fibo support at $2,681 will be put to the test, near where the 21-day Simple Moving Average (SMA) closes in.
On the flip side, acceptance above the $2,740 static resistance is critical to resuming a sustained uptrend.
Gold buyers would then take on the $2,750 psychological barrier. The record high of $2,759 will be next on buyers’ radars.
The 14-day Relative Strength Index (RSI) is pointing lower but holds comfortable above the 50 level, currently trading near 65, suggesting that any decline in Gold price could be seen as a good dip-buying opportunity.
Categories
Recent Posts
GOLD recovers on US-Iran ceasefire hopes, but a Bear Cross looms
GOLD risks pullbacks amid oversold conditions, Gulf war
GOLD crumbles as Gulf war escalates; is a turnaround coming?
LIKE THIS ARTICLE? SHARE IT!
Ready to trade?
Unleash your trading skills with your Maxain account today!
Easy funding & withdrawals
No deposit fees