Gold Price Forecast: XAU/USD eyeing a firm break above $1800, US GDP in focus
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER- Gold holds gains under $1800 amid dovish Fed, upbeat mood.
- XAU/USD remains set to test $1800 on the 1D chart.
- Focus shifts to key US economic data amid stimulus updates.
Gold (XAU/USD) extended its recovery from eight-day lows of $1763 and rallied as high as $1782 after the US dollar’s sell-off accelerated alongside the decline in the Treasury yields after the Federal Reserve (Fed) kept the monetary policy settings unchanged on Wednesday. It was the dismissal from Fed Chair Powell on tapering talks, which hammered the greenback across the board while the 10-year US rates fell from near 1.65% to 1.61%. While acknowledging improvement in the economic outlook, courtesy of the successful vaccination drives, Powell downplayed concerns over rising inflation, calling them transitory.
Gold is building on Fed-induced turnaround this Thursday, gaining additional benefit from US President Joe Biden’s push for $a 1.8 trillion spending package. Expectations of ongoing policy support from the government and the central bank offer a much-needed boost to the bulls. Heading into a flurry of critical US economic data, including the advance Q1 GDP, gold has entered a phase of upside consolidation, as the US dollar attempts a bounce across the board. However, gold is likely to resume its uptrend as the greenback continues to feel the pull of gravity amid dovish Fed expectations.
Gold Price Chart - Technical outlook
Gold: Daily chart
Gold continues to face stiff resistance on every attempt to take on the $1790 hurdle. Although the XAU bulls remain hopeful, as the 14-day Relative Strength Index (RSI) holds within the bullish region.
A break above the multi-day highs of $1790 could expose powerful resistance near $1797-$1798 levels, which is the confluence of April 21 and 22 highs.
The next critical hurdle awaits at $1800, where the 100-daily moving average (DMA) coincides.
Only a daily closing above that level would revive the bullish momentum.
On the flip side, Wednesday’s low is the next relevant downside target. Meanwhile, the upward-pointing 21-DMA at $1758 is the last line of defense for the XAU bulls.
- Gold holds gains under $1800 amid dovish Fed, upbeat mood.
- XAU/USD remains set to test $1800 on the 1D chart.
- Focus shifts to key US economic data amid stimulus updates.
Gold (XAU/USD) extended its recovery from eight-day lows of $1763 and rallied as high as $1782 after the US dollar’s sell-off accelerated alongside the decline in the Treasury yields after the Federal Reserve (Fed) kept the monetary policy settings unchanged on Wednesday. It was the dismissal from Fed Chair Powell on tapering talks, which hammered the greenback across the board while the 10-year US rates fell from near 1.65% to 1.61%. While acknowledging improvement in the economic outlook, courtesy of the successful vaccination drives, Powell downplayed concerns over rising inflation, calling them transitory.
Gold is building on Fed-induced turnaround this Thursday, gaining additional benefit from US President Joe Biden’s push for $a 1.8 trillion spending package. Expectations of ongoing policy support from the government and the central bank offer a much-needed boost to the bulls. Heading into a flurry of critical US economic data, including the advance Q1 GDP, gold has entered a phase of upside consolidation, as the US dollar attempts a bounce across the board. However, gold is likely to resume its uptrend as the greenback continues to feel the pull of gravity amid dovish Fed expectations.
Gold Price Chart - Technical outlook
Gold: Daily chart
Gold continues to face stiff resistance on every attempt to take on the $1790 hurdle. Although the XAU bulls remain hopeful, as the 14-day Relative Strength Index (RSI) holds within the bullish region.
A break above the multi-day highs of $1790 could expose powerful resistance near $1797-$1798 levels, which is the confluence of April 21 and 22 highs.
The next critical hurdle awaits at $1800, where the 100-daily moving average (DMA) coincides.
Only a daily closing above that level would revive the bullish momentum.
On the flip side, Wednesday’s low is the next relevant downside target. Meanwhile, the upward-pointing 21-DMA at $1758 is the last line of defense for the XAU bulls.
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 and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.