At the beginning of this week's trading, XAU/USD gold prices declined. This was following limited profit-taking sales, towards the level of 1910 dollars an ounce, before resuming stability around the resistance level 1932 dollars an ounce again, near its nine-month high.
- Gold prices declined, driven by the rise in the US dollar.
- Investors will be watching important economic data this week, including fourth-quarter US GDP, durable goods orders, and S&P Global Purchasing Managers' Index (PMI) readings.
- The price of the yellow metal is trading at its highest level since August.
According to trading, gold prices are retreating from a weekly loss of about 0.3%, but they are still high by about 5% since the beginning of the year 2023 to date. Over the past three months, the price of the precious metal has risen nearly 16%. In the same performance, the price of silver, the sister commodity to gold, penetrated below $ 23 an ounce. The white metal has failed to sustain the momentum it enjoyed heading into 2023, down more than 5% year-to-date.
Exciting Week for Economic Data
The most important statistic will be the advance estimate of the US GDP for the fourth quarter. The market expects a growth rate of 2.5%, which could be down from 3.2% in the third quarter. The Federal Reserve Bank of Atlanta's GDP model now estimates a rate of 3.5% in the October-December period.
Meanwhile, even then, the Conference Board released its latest Leading Economic Index (LEI), which fell 1% in December, relatively unchanged from the 1.1% drop in November. The ID, which many consider a reliable signal of recession, has fallen 4.2% over the past six months.
Other factors affecting the gold market:
US Treasury market yields rose across the board, with the benchmark 10-year yield rising 4.1 basis points to 3.525%. The one-month note rose 0.5 basis points to 4.563%, while the 30-year note rose 3.8 basis points to 3.694%.
Meanwhile, the US Dollar Index (DXY), which measures the performance of the greenback against a basket of other major currencies, rose 0.19% to 102.21, from an opening of 102.01. The index was flat last week and is down more than 1% since the beginning of 2023. A weaker dollar is good for dollar-denominated commodities because it makes it cheaper for foreign investors to buy them.
In other metals markets, copper futures fell to $4.2365 a pound. Platinum futures fell to $1,041.20 an ounce. Palladium futures fell to $1,710.50 an ounce.
XAU/USD gold price forecast today:
The general trend of XAU/USD gold price is still bullish. Stability is above the psychological resistance at $1900 an ounce, which confirms this. According to the performance on the daily chart, the price moves towards and above the resistance at $1935 an ounce, moves the technical indicators towards overbought levels. Unless the yellow metal gets more momentum, it may be exposed to profit-taking sales at any time. Currently, the closest resistance levels according to the current trend are 1939 and 1955 dollars an ounce.
The current bullish outlook may be shaken if the price of gold moves towards the support levels of 1905 and 1875 dollars, respectively. The price of gold will remain bullish until the announcement of the growth rate of the US economy and the reading of the preferred inflation measure of the Federal Reserve Bank by the end of the week.
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