Gold Price Forecast: XAU/USD Brights And Surpasses $2000 Amid Mixed US Economic Data

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  • Gold climbs 0.61% to $2003.50, buoyed by falling US Treasury yields and uncertain economic indicators.
  • January's Retail Sales fall 0.8%, highlighting economic volatility amid poor weather affecting auto and gasoline sales.
  • Fed's cautious inflation outlook and lower CPI than forecast weaken the Dollar, boosting gold's appeal.

Gold price recovered some ground on Thursday, as it reclaimed the $2000 mark due to falling US Treasury bond yields. A tranche of mixed US economic data weighed on the Greenback. Therefore, the XAU/USD posted gains of 0.61%, but as the Asian session begins, it trades at $2003.50.


Mixed US economic data and lower US Treasury yields boost Gold’s appeal

The latest data from the United States was mixed. Retail Sales for January saw a decrease of -0.8% month-over-month, falling short of both the previous month's figures and the estimated -0.1% contraction. This decline was largely attributed to reduced sales at auto dealerships and gasoline service stations, with stormy weather conditions further dampening sales.

Concurrently, Initial Jobless Claims for the latest week came at 212K, lower than both the forecasts and the previous week's reading of 220K. This comes as a somewhat unexpected development, given that claims were anticipated to increase following announcements of layoffs by several companies.

On Thursday, US Treasury bond yields lost two basis points and finished at 4.236%, while the US Dollar Index (DXY) dropped 0.41% to 104.28.

In the meantime, Federal Reserve Vice-Chairman for Supervision Michael Barr crossed the wires on Wednesday. He said that the path to 2% inflation would be ‘bumpy’ following the latest US inflation report. On Tuesday, the Consumer Price Index (CPI) came in at 3.1% YoY, below the previous reading of 3.4%, but missed estimates of 2.9%.


XAU/USD Price Analysis: Technical outlook

Gold price is neutral to downward biased, even though the yellow metal trades above the 200-day moving average (DMA). From a price action standpoint, Gold has achieved successive series of lower highs and lows, opening the door for further downside. However, sellers must reclaim the 100-DMA at $1996.01, which could open the door to test the December 13 low of $1973.13, followed by the 200-DMA at $1965.41. Conversely, if buyers push prices above the 50-DMA at $2031.80, Gold could aim towards the February 1 high at $2065.60.


XAU/USD

OVERVIEW
Today last price 2004.89
Today Daily Change 13.73
Today Daily Change % 0.69
Today daily open 1991.16

 

TRENDS
Daily SMA20 2025.24
Daily SMA50 2031.83
Daily SMA100 1992.91
Daily SMA200 1965.62

 

LEVELS
Previous Daily High 1996.17
Previous Daily Low 1984.26
Previous Weekly High 2044.63
Previous Weekly Low 2014.92
Previous Monthly High 2079.01
Previous Monthly Low 2001.9
Daily Fibonacci 38.2% 1988.81
Daily Fibonacci 61.8% 1991.62
Daily Pivot Point S1 1984.89
Daily Pivot Point S2 1978.62
Daily Pivot Point S3 1972.98
Daily Pivot Point R1 1996.8
Daily Pivot Point R2 2002.44
Daily Pivot Point R3 2008.71


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Disclosure: Information on this article contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes ...

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