Gold Price Forecast: XAU/USD brights and surpasses $2000 amid mixed US economic data


  • 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

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround

EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround

EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll. 

 

EUR/USD News
GBP/USD nears 1.2600 on renewed USD weakness

GBP/USD nears 1.2600 on renewed USD weakness

GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.

GBP/USD News
Gold rises above $2,620 as US yields edge lower

Gold rises above $2,620 as US yields edge lower

Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.

Gold News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures