• Wed. Jul 17th, 2024

Gold Price Forecast: XAU/USD pulls back from five-month high, trades near $1,970

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  • Gold prices snap the winning streak amid US Dollar rebound.
  • Escalation of the Israel-Hamas conflict could limit the downfall in the prices of Gold.
  • Greenback receives upward support on improved US Treasury yields.
  • Dovish remarks by Fed officials weakened the buck.

Gold price halts the winning streak that began on October 17, trading lower around $1,970 per troy ounce during the Asian session on Monday. While geopolitical tensions between Israel and Hamas typically contribute to a higher demand for gold as a traditional safe-haven asset, the current risk-on sentiment is posing a challenge to the price of gold.

The US Dollar Index (DXY) rebounds, trading higher around 106.30 at the time of writing. The US Dollar receives upward support due to the positive momentum in US Treasury yields, with the 10-year US Treasury yield standing at 4.98%, up by 1.30% by the press time.

The Greenback is also potentially supported by robust US economic data released during the previous week. The recent job data paints a picture of a robust economy. Weekly Initial Jobless Claims have reached their lowest level since January, indicating a solid and resilient job market. However, a contrasting trend is seen in existing home sales, which have fallen to their lowest point since 2010, signaling challenges in the housing market.

Atlanta Fed President Raphael Bostic, on Friday, expressed that the Federal Reserve is unlikely to lower interest rates before the middle of next year. Fed Philadelphia President Patrick Harker reiterated his preference for maintaining unchanged interest rates.

Furthermore, Fed Cleveland President Loretta Mester stated that the Fed is “at or near the peak of the rate hike cycle.” However, Mester also acknowledged that the data released in the previous week could influence the central bank’s decision regarding the future of monetary policy.

Federal Reserve (Fed) Chairman Jerome Powell, in the previous week, made it clear that the central bank is not planning an immediate rate hike. Powell emphasized the potential for further tightening of monetary policy in response to additional signs of growth.

Investors will likely keep a close eye on the US S&P Global PMI on Tuesday, followed by the Q3 Gross Domestic Product (GDP) on Thursday. These key indicators have the potential to significantly impact market sentiment and provide insights into the broader economic landscape of the United States.

XAU/USD: ADDITIONAL IMPORTANT LEVELS

OVERVIEW
Today last price 1972.08
Today Daily Change -9.14
Today Daily Change % -0.46
Today daily open 1981.22
TRENDS
Daily SMA20 1883.69
Daily SMA50 1904.26
Daily SMA100 1922.82
Daily SMA200 1930.96
LEVELS
Previous Daily High 1997.23
Previous Daily Low 1972.06
Previous Weekly High 1997.23
Previous Weekly Low 1908.23
Previous Monthly High 1953.01
Previous Monthly Low 1846.37
Daily Fibonacci 38.2% 1987.62
Daily Fibonacci 61.8% 1981.67
Daily Pivot Point S1 1969.78
Daily Pivot Point S2 1958.33
Daily Pivot Point S3 1944.61
Daily Pivot Point R1 1994.95
Daily Pivot Point R2 2008.67
Daily Pivot Point R3 2020.12

 

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