Gold Price Forecast: XAU/USD oscillates above $1,820, downside looks likely on hawkish Fed bets
- Gold price has turned sideways following the footprints of the DXY.
- The upbeat US Durable Goods Orders have bolstered the odds of one more 75 bps rate hike by the Fed.
- A symmetrical triangle formation by the gold prices is hinting for a continuation of a consolidation phase.
Gold price (XAU/USD) is displaying back and forth moves in a narrow range of $1,821.76-1,825.55 in the Tokyo session. The precious metal is trading lackluster right from the first tick on Tuesday. Earlier, the gold prices witnessed a steep fall after failing to surpass the critical hurdle of $1,840.00. Considering the ongoing inventory distribution, a downside move below Monday’s low at $1,820.85 will drag the bright metal significantly.
Also, the US dollar index (DXY) is displaying a lackluster performance in the Asian session. The DXY is struggling to contain the round-level resistance of 104.00 after a firmer rebound from Monday’s low at 103.69.
The upbeat US Durable Goods Orders released on Monday have raised the odds of a consecutive 75 basis point (bps) rate hike by the Federal Reserve (Fed). Investors were worried over the fact that growth prospects might not remain supportive of more policy tightening. However, the release of the above-mentioned economic data at 0.7% vs. 0.1% forecasted has strengthened the Fed to elevate interest rates without much hesitation.
Gold technical analysis
Gold hourly chart
|Today last price||1825.59|
|Today Daily Change||2.75|
|Today Daily Change %||0.15|
|Today daily open||1822.84|
|Previous Daily High||1841.05|
|Previous Daily Low||1820.81|
|Previous Weekly High||1847.95|
|Previous Weekly Low||1816.99|
|Previous Monthly High||1909.83|
|Previous Monthly Low||1786.94|
|Daily Fibonacci 38.2%||1828.54|
|Daily Fibonacci 61.8%||1833.32|
|Daily Pivot Point S1||1815.42|
|Daily Pivot Point S2||1807.99|
|Daily Pivot Point S3||1795.18|
|Daily Pivot Point R1||1835.66|
|Daily Pivot Point R2||1848.47|
|Daily Pivot Point R3||1855.9|