Gold Price Forecast: XAU/USD oscillates above $1,800 amid USD rebound, ahead of US ISM PMI

  • Gold price is hovering above $1,800.00, downside looks likely as DXY rebounds.
  • Fed Powell is unable to deliver any guarantee on bringing the inflation rate down to 2%.
  • Investors are expecting an underperformance on the US ISM PMI front.
Gold price (XAU/USD) is holding itself above the psychological support of $1,800.00. The precious metal is declining gradually and is expected to remain in the grip of bears as the US dollar index (DXY) has rebounded modestly. Considering the price action, the gold prices are expected to violate $1,800.00 and the bears will show their true colors.

Traders should understand the fact that the commentary from Federal Reserve (Fed) chair Jerome Powell in his speech at ECB’s annual Forum on Central Banking has underpinned the DXY for a prolonged period. Fed Powell mentioned that the Fed will focus on returning the inflation rate at 2% by deploying the quantitative measures but there is no guarantee of that. This indicates that investors should start admitting that higher rates are for a prolonged period now and the employment tenure of Fed chair Jerome Powell will be full of troubles and challenges.

In today’s session, the spotlight will remain on the US Institute of Supply Management (ISM) Purchase Managers Index (PMI) data. As per the preliminary estimates of 55 vs. 56.1 previously reported, an underperformance is expected by the market participants.

Gold technical analysis

On an hourly scale, the gold prices are on a verge of giving a downside break of Thursday’s low at $1802.79 which will activate the descending triangle formation and will drag the precious metal vertically lower. Declining 20- and 50-period Exponential Moving Averages (EMAs) at $1,809.23 and $1,814.00 respectively add to the downside filters. The Relative Strength Index (RSI) (14) has tumbled below 40.00, which signals a fresh bearish impulsive wave ahead.

Gold hourly chart

XAU/USD

OVERVIEW
Today last price0.6903
Today Daily Change0.0003
Today Daily Change %0.04%
Today daily open0.69
 
TRENDS
Daily SMA200.7074
Daily SMA500.7099
Daily SMA1000.7214
Daily SMA2000.7234
LEVELS
Previous Daily High0.6928
Previous Daily Low0.6868
Previous Weekly High0.707
Previous Weekly Low0.685
Previous Monthly High0.7267
Previous Monthly Low0.6828
Daily Fibonacci 38.2%0.6891
Daily Fibonacci 61.8%0.6905
Daily Pivot Point S10.6869
Daily Pivot Point S20.6839
Daily Pivot Point S30.6809
Daily Pivot Point R10.6929
Daily Pivot Point R20.6959
Daily Pivot Point R30.6989

(Reporting by AJFX Limited, Editing by Shivangi Jadav)

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