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Home Gold News Gold Price Forecast: XAU/USD upside appears more lucrative as US data looms

Gold Price Forecast: XAU/USD upside appears more lucrative as US data looms

by anna

Gold Price (XAU/USD) cheers the return of risk-on mood as traders reassess previous fears emanating from China. Adding strength to sentiment, as well as the XAU/USD price, is the US Dollar’s failure to defend late Friday’s recovery amid unimpressive data. With this, the Gold buyers flex their muscles for another fight to regain the $2,000 round figure.

Apart from the fresh catalysts suggesting the dragon nation’s capacity to defend economic growth, headlines suggesting the restoration of the US-China ties also underpin the market’s cautious optimism. Elsewhere, the US NY Empire State Manufacturing Index failed to impress US Dollar bulls, despite Friday’s upbeat consumer-centric figures.

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Elsewhere, hopes of witnessing more stimulus from China and challenges for restrictive monetary policies also allow the Gold Price to remain firmer.

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Moving on, US Retail Sales and Industrial Production for June will be crucial to determine the Fed’s rate hike trajectory past July and can help gauge the Gold Price moves.

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Our Technical Confluence Indicator shows that the Gold Price recently crossed the key resistances and has softer hurdles toward the north than otherwise.

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That said, a convergence of the previous weekly high and upper band of the Bollinger on the four-hour play highlights immediate resistance near $1,965.

Following that, the Pivot Point one-month R1 can prod the XAU/USD bulls around $1,975 before directing them to the $1,985 resistance confluence encompassing the previous monthly high.

On the flip side, the 50-DMA level of around $1,951 limits the immediate downside of the Gold Price.

Adjacent to that is the convergence of the Fibonacci 61.8% on one month and 23.6% on one day, near $1,950.

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