Gold Price Forecast: XAU/USD bounces off monthly lows, still under pressure near critical $1,820 level

  • Downward revision of fourth quarter GDP in the US, upward revision of inflation indicators.
  • Jobless claims and Chicago Fed activity exceeded expectations.
  • Gold’s rebound fails to exceed $1,830.

gold prices They bounced after hitting fresh monthly lows amid risk appetite and an intraday US dollar reversal. The XAU/USD pair bottomed at $1,817 after the US economic data release, the lowest level since late December, and then rallied towards the $1,830 zone.

Data published in the US were mixed. Initial claims for jobless benefits fell to 192,000, the lowest level in three weeks. The second reading of fourth-quarter GDP showed a lower annualized growth rate of 2.7%, down from the 2.9% previous estimate. GDP inflation indicators reported an upward revision. The Chicago Fed National Activity Index rose from -0.43 to 0.23, beating expectations.

Investors continue to digest the FOMC minutes and new economic figures. The Dow Jones rises 0.43% and the Nasdaq 0.50%. US yields are down slightly, hovering around monthly highs.

The dollar peaked after the US data release, while gold bottomed at $1,817, the lowest level since December 30. Subsequently, the yellow metal bounced towards $1,830, but failed to break above that key level any time soon.

After the opening bell on Wall Street, the dollar gained momentum again and pushed XAU/USD lower again. XAU/USD is approaching the $1,820 area, which is critical. A consolidation below would open the doors to further weakness, targeting $1,812 initially.

XAU/USD daily chart

XAUUSD

XAU/USD

Overview
Last price today 1826.29
daily change today 1.43
today’s daily variation 0.08
today’s daily opening 1824.86
Trends
daily SMA20 1875.26
daily SMA50 1864.05
daily SMA100 1790.08
daily SMA200 1776.28
levels
previous daily high 1846.11
previous daily low 1823.63
Previous Weekly High 1870.71
previous weekly low 1818.93
Previous Monthly High 1949.27
Previous monthly minimum 1823.76
Fibonacci daily 38.2 1832.22
Fibonacci 61.8% daily 1837.52
Daily Pivot Point S1 1816.96
Daily Pivot Point S2 1809.05
Daily Pivot Point S3 1794.48
Daily Pivot Point R1 1839.44
Daily Pivot Point R2 1854.01
Daily Pivot Point R3 1861.92

Source: Fx Street

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