Gold Crosses Over $1,790 – Quick Daily Outlook

Gold prices continue to rise towards $1,800, with an intraday high near $1,795 by press time, as a weaker US dollar allows gold purchasers to maintain the reins during early Monday. As a result, the shining metal continues the previous day’s rebound from a nearly eight-day low during a sluggish past week to the upcoming dull week.

However, the US Dollar Index (DXY) suffers its first daily loss in three, falling 0.18% intraday to 104.58, amid cautious optimism in the market, teasing XAU/USD bulls to return.

As a result, the DXY finds it difficult to rationalize recent hawkish remarks by Federal Reserve Bank of Cleveland President Loretta Mester and New York Federal Reserve President John Williams. The cause could be tied to the preliminary US PMIs for December, in addition to the Fed’s 0.50% rate hike on Friday.

In other news, recession fears hold gold bears at bay as global central banks defend their hawkish stance amid rising inflation fears. Furthermore, the XAU/USD bulls have conflicting concerns about China’s improvement in COVID circumstances.

Looking forward, Friday’s US Core Personal Consumption Expenditures (PCE) Price Index, which is predicted to be 4.6% YoY and 5.0% higher than previous readings, will be crucial for gold dealers because it is the Fed’s favored inflation gauge.

Gold Technical Outlook

Gold price tries to break through the $1,776.25 level, making it more likely that the correctional bearish trend will continue soon. A break below $1,779 could open the way to $1,746.40 as the next negative station and remind you that the bearish wave will only continue if the price stays stable below $1,797.60.

Today’s trading range is likely between $1,760 support and $1,795 resistance.

Today’s projected trend is Bullish.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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