Gold Price Forecast: XAU/USD looks to $2,700 after Wednesday’s close above $2,670

Gold price is consolidating gains near record highs in Asian trading on Thursday, trading in the green for the third day in a row. Gold buyers now look to the US Retail Sales data for the next push higher.

Gold price awaits US data, as China stimulus disappoints

Gold price is capitalizing on a renewed pullback in the US Dollar (USD) across the board even as risk sentiment takes a hit on disappointing China’s property market support measures. China’s Housing Minister announced that Beijing will "increase the credit scale of white-list projects to four trillion" yuan by the end of the year and and help renovate a million homes.

However, these latest measures by China to shore up the struggling sector failed to impress local equities, as the major Chinese benchmark indices trim early gains. Further, China’s economic woes could continue to act as a headwind to Gold price, as the dragon nation is the world’s top yellow metal consumer.

Additionally, a modest uptick in the US Treasury bond yields also check the Gold price upside. Meanwhile, markets are resorting to profit-taking on their USD longs heading into the high-impact economic data release of this week – the US Retail Sales report.

The US Dollar extended its recovery rally into Wednesday on increased expectations that the Republican nominee Donald Trump will likely win the US presidential race, as we remain a few weeks away from the November 5 elections.

The focus has recently shifted toward the US elections, which has largely contributed to the ongoing US Dollar advance, as Trump’s fiscal and trade policies are seen as inflationary and positive for the Greenback.

Meanwhile, a 25 basis points (bps) interest-rate cut by the US Federal Reserve (Fed) in November is a done deal. Therefore, the US Retail Sales data are unlikely to alter these expectations. However, it could impact the market’s pricing of another rate cut in December.

That said, risk trends will continue to play their part in driving the Gold price action alongside US macro news, Fedspeak and Trump optimism.

Gold price technical analysis: Daily chart

Gold price closed Wednesday’s trading above the key $2,670 resistance and flirted with the record high at $2,686.

The 14-day Relative Strength Index (RSI), points north above the midline, suggesting that there is more room to the upside.

A sustained break above the all-time high of $2,686 will trigger a fresh advance to the $2,700 round level.

Further up, buyers could challenge the $2,750 psychological barrier.

On the downside, the immediate support aligns at $2,670, the previous resistance now turned support.

Acceptance below that level will expose sellers to the key 21-day Simple Moving Average (SMA) support at $2,646.

Ahead of that the previous day’s low of $2,659 could test bullish commitments.