During yesterday's limited trading, XAU/USD gold prices rose slightly, reaching the resistance level of $1787 an ounce. It is recovering from recent selling operations that pushed it towards the support level of $1767 an ounce.
The recent rebound gains came, as investors looked forward to a series of meetings of global central banks led by the US Federal Reserve this week. Next, looking for evidence of the pace of interest rate hikes. Overall, rising fears of a global recession and weak trade data from China weighed on riskier assets, helping to provide some support for bullion.
In general, the markets are looking forward to the decisions of the central banks, as the European Central Bank, the Bank of England and the Federal Reserve are scheduled to hold monetary policy meetings next week. In this regard, European Central Bank policy maker Constantin Herodotus said on Tuesday that interest rates will rise again, although they are now "very close" to their neutral level. The Fed is also widely expected to raise interest rates by 50 basis points at the FOMC meeting next week, reversing its four rate hikes by 75 basis points.
Another 50 basis point increase is expected at the February FOMC meeting, according to CME's FedWatch tool.
The US economic calendar remains relatively calm today, and data released this week showed that Chinese exports and imports contracted to their weakest level since mid-2020 in November. Elsewhere, official data showed that German industrial production fell by 0.1 percent month-on-month in October, slower than the expected decline of 0.6 percent.
Separately, the UK housing market continued to slow in November as house prices fell for the third consecutive month and the most in more than 14 years, survey results from Lloyds Bank Halifax unit and S&P Global showed.
US stocks fluctuated between small gains and losses on Wall Street on Wednesday, leaving uncertain prospects for the market to break a four-day losing streak. By performance, the S&P 500 fell 0.2%, the Dow Jones Industrial Average fell 16 points, or 0.1%, to 33,579, and the Nasdaq fell 0.6%.
Every major indicator is on track for weekly losses.
Overall, investors have been dealing with a relative lack of news ahead of updates on inflation and consumer confidence later this week and the Federal Reserve meeting next week. China has backed away from more stringent COVID-19 rules that have crippled that country's economy and added more uncertainty to global supply chains.
Markets in Asia closed lower, and European markets were mostly lower. US crude oil prices fell by 2.3 percent.
XAU/USD gold price forecast today:
- According to the performance on the daily chart below, gold price XAU/USD remained above the $1785 resistance.
- Stimulating the bulls to move towards the psychological resistance $1800 an ounce again, which is an important level for the bullish trend of gold.
- From there, to the resistance levels at 1815 and 1832 dollars, respectively, the technical indicators will move towards overbought levels.
- In the event that the US dollar returns to its strength, the current XAU/USD gold price gains may stop.
In addition to that, the metal will lose enough momentum to rebound upwards, and today will be affected by the statements of the European Central Governor Lagarde and the number of weekly US jobless claims. The closest support levels for gold today are $1768 and $1750, respectively.
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