Gold Price Forecast: XAU/USD holds gains above $1,750 as US GDP hogs limelight
- Gold price is aiming to shift its business above the immediate hurdle of $1,750.00.
- The US Dollar has sensed support around 106.00 amid a quiet market mood.
- The preliminary GDP for the third quarter is seen unchanged at 2.6%., however, a decline would delight the Fed.
Gold price (XAU/USD) is focusing on establishing above the critical resistance of $1,750.00 in the early Asian session after a solid recovery from $1,746.00 witnessed late Friday. Broadly, the precious metal is looking to recapture the three-and-a-half-month high at $1,786.54 amid a broader strength in market mood.
Global markets remained subdued on Friday amid the unavailability of a potential trigger that indicates a situation of volatility contraction. This week, the markets are expected to display some meaningful moves, therefore a power-pack performance is expected from various assets. Meanwhile, the US Dollar Index (DXY) has attempted a recovery after dropping to near 106.00. The 10-year US Treasury yields have failed to cross the critical hurdle of 3.70%.
Going forward, the US Gross Domestic Product (GDP) data will be of utmost importance. The preliminary GDP for the third quarter is seen unchanged at 2.6%. As the Federal Reserve (Fed) is utterly dedicated to bringing price stability, a slower growth rate is highly recommended. A spell of improvement in the growth rates will continue to keep reign into inflation as it indicates robust demand from individuals, which doesn’t lead to a decline in price growth by the manufacturers and service providers.
Gold technical analysis
On an hourly scale, Gold price has displayed a steep recovery after testing the 38.2% Fibonacci retracement (plotted from November 3 low at $1,616.69 to November 15 high at $1,758.88) at $1,722.00 and has also crossed the 23.65 Fibo retracement at $1,746.50.
The precious metal has also crossed the 20-period Exponential Moving Average (EMA) at $1,753.17, which indicates that the short-term trend is solid again.
Meanwhile, the Relative Strength Index (RSI) (14) has rebounded after sensing support around 40.00, which signals that dips are explosively capitalized by the market participants.
Gold hourly chart
