Gold Price Forecast: XAU/USD kisses $1,880 after a sheer recovery amid softer US yields


  • Gold price has touched $1,880.00 amid a recovery in the risk-on market mood.
  • Softer US yields are weighing on the USD Index despite hawkish Fed bets.
  • Gold price is auctioning in a re-distribution episode in Wyckoff’s markdown phase.

Gold price (XAU/USD) has refreshed its day’s high above $1,880.00 in the Asian session. The gold price has shown a vertical upside move after rebounding from $1,872.00 as the risk appetite of the market participants has improved. The precious metal is expected to extend its upside move above $1,880.00 confidently as softer US Treasury yields have eased the risk-off impulse.

The yields earned on 10-year US Treasury bonds have dropped to near 3.61%. S&P500 futures have shown a recovery in the Asian session after a sell-off on Wednesday. The context that the Federal Reserve (Fed) won’t be aggressive ahead while hiking interest rates is supporting the 500-US stocks basket.

Meanwhile, the US Dollar Index (DXY) is struggling to sustain above 103.00 despite the street having started anticipating an interest rate peak by the Fed above 5%.

Jamie Dimon, CEO of JPMorgan Chase & Co., cautioned against declaring victory against inflation too early, warning the Fed could raise interest rates above the 5% mark if higher prices ended up "sticky," reported Reuters. He further added that Fed chair Jerome Powell must go beyond 5% if inflation doesn’t come down to 3.5-4.00%.

Gold technical analysis

Gold price is delivering a sideways performance on a broader note amid the Inverted Flag formation, which indicates a Wyckoff’s re-distribution in a Markdown phase. Usually, the re-distribution part of the markdown phase serves as an inventory adjustment in which those participants initiate shorts, which prefer to enter an auction after the establishment of a bearish bias.

The 100-period Exponential Moving Average (EMA) at $1,884.35 will act as a major barricade for the Gold bulls.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, which indicates an absence of a potential trigger.

Gold hourly chart

XAU/USD

Overview
Today last price 1879.01
Today Daily Change 3.69
Today Daily Change % 0.20
Today daily open 1875.32
 
Trends
Daily SMA20 1913.77
Daily SMA50 1853.15
Daily SMA100 1772.46
Daily SMA200 1775.99
 
Levels
Previous Daily High 1886.48
Previous Daily Low 1867.45
Previous Weekly High 1959.8
Previous Weekly Low 1861.45
Previous Monthly High 1949.27
Previous Monthly Low 1823.76
Daily Fibonacci 38.2% 1879.21
Daily Fibonacci 61.8% 1874.72
Daily Pivot Point S1 1866.35
Daily Pivot Point S2 1857.39
Daily Pivot Point S3 1847.32
Daily Pivot Point R1 1885.38
Daily Pivot Point R2 1895.45
Daily Pivot Point R3 1904.41

 

 

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