Gold Price Forecast: XAU/USD Extends Its Downside Below $1,950 Ahead Of US PMI, Fed’s Powell Speech
Photo by Jingming Pan on Unsplash
Gold price (XAU/USD) extends its downside and trades in negative territory for the sixth consecutive day during the early Asian trading hours on Monday. The renewed US Dollar (USD) demand exerts some selling pressure on USD-denominated Gold price. The precious metal currently trades near $1,846, losing 0.12% on the day. Meanwhile, the US Dollar Index (DXY), a measure of the value of the USD relative to a basket of foreign currencies, holds above 106.25 after retracing the low of 105.65 on Friday.
The US Bureau of Economic Analysis reported on Friday that the Personal Consumption Expenditures (PCE) Price Index climbed 3.5% YoY in August from 3.4% in July, meeting market expectations. The annual Core PCE Price Index, the Federal Reserve's preferred inflation indicator, grew 3.9% from 4.3% in July, in line with the estimation. On a monthly basis, the PCE Price Index and the Core PCE Price Index rose 0.4% and 0.1% MoM, respectively. Both of these figures came in below the market expectations.
On the weekend, China’s manufacturing activity grew into positive territory. The Chinese Caixin/S&P Global Manufacturing Purchasing Managers' Index (PMI) dropped to 50.6 in September from the previous reading of 51.0, below the market consensus of 51.2. However, this figure failed to boost gold price.
Furthermore, the US passed bills to prevent a government shutdown following Friday's session, extending funding until November 17. This, in turn, lifts the US Dollar and drags XAU/USD lower.
Gold traders will monitor the US ISM Manufacturing PMI for September due on Monday. Also, Fed Chair Powell’s speech could offer hints about potential interest rate hikes. Traders will take cues from these events and find trading opportunities around the gold price.
XAU/USD
| OVERVIEW | |
|---|---|
| Today last price | 1846.74 |
| Today Daily Change | -1.80 |
| Today Daily Change % | -0.10 |
| Today daily open | 1848.54 |
| TRENDS | |
|---|---|
| Daily SMA20 | 1912.2 |
| Daily SMA50 | 1921.29 |
| Daily SMA100 | 1935.2 |
| Daily SMA200 | 1927.58 |
| LEVELS | |
|---|---|
| Previous Daily High | 1879.88 |
| Previous Daily Low | 1846.37 |
| Previous Weekly High | 1927.27 |
| Previous Weekly Low | 1846.37 |
| Previous Monthly High | 1953.01 |
| Previous Monthly Low | 1846.37 |
| Daily Fibonacci 38.2% | 1859.17 |
| Daily Fibonacci 61.8% | 1867.08 |
| Daily Pivot Point S1 | 1836.65 |
| Daily Pivot Point S2 | 1824.75 |
| Daily Pivot Point S3 | 1803.14 |
| Daily Pivot Point R1 | 1870.16 |
| Daily Pivot Point R2 | 1891.77 |
| Daily Pivot Point R3 | 1903.67 |
More By This Author:
GBP/USD Loses The 1.22 Handle To Close Out Friday Trading
Gold Bounces Back On US Dollar Correction Ahead Of Fed’s Preferred Inflation Gauge
EUR/JPY Approaches 160.00 Despite Soft Eurozone HICP Data
Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...
more
Comments
