Gold Price Forecast: XAU/USD Hovers Below $2,000 Amid Rate Hike Speculations
Gold‘s price (XAU/USD) exhibits a modest upward trend for the second consecutive day on Friday, though with limited bullish momentum, consistently trading beneath the pivotal $2,000 mark during the Asian trading session. Market participants appear to adopt a cautious stance, eagerly awaiting the imminent U.S. employment report for insights into the Federal Reserve’s interest rate trajectory, which could influence their forthcoming trading decisions.
As the anticipation builds for the crucial data release, the prevailing sentiment that the Fed might be approaching the culmination of its monetary tightening cycle, possibly transitioning to rate cuts by June 2024, places the US Dollar (USD) advocates in a defensive position. Concurrently, apprehensions regarding a deceleration in China’s economic growth and geopolitical tensions in the Middle East provide support to the traditionally safe asset, GOLD . Nevertheless, the buoyant mood in equity markets, indicative of a risk-on sentiment, restricts gold’s appreciation.
Gold Technical Analysis
GOLD Struggles to Breach the $2,000 Milestone
From a technical standpoint, the status quo remains largely unchanged for GOLD , with any potential upward movements anticipated to encounter robust resistance around the $2,000 threshold. An additional barrier is identified near the $2,008-2,010 zone, aligning with the multi-month high reached last Friday.
For bulls to anticipate further ascension, a decisive breakthrough beyond this obstacle is required, setting the stage for a potential rally towards the subsequent resistance zone around $2,022.
Conversely, the immediate downside appears to be safeguarded by the $1,980 area, closely followed by the weekly nadir near $1,970, established on Wednesday. Prolonged bearish pressure could reveal the $1,964 interim support, potentially leading Gold‘s price towards a lower support band within the $1,954-1,953 range.
Gold XAU Live Chart
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