GOLD PRICE FORECAST: XAU/USD WEAKNESS HINGES ON $1,920 BREAKDOWN, FED’S VERDICT – CONFLUENCE DETECTOR
- Gold price retreats from intraday high while paring the first daily gains in three.
- Cautious mood ahead of key data/events challenge XAU/USD traders.
- Softer yields probe US Dollar rebound and Gold bears.
- Multiple technical indicators highlight $1,917-18 as the key support confluence.
Gold price (XAU/USD) stays defensive around $1,930, printing mild gains heading into Monday’s European session, as traders begin the key week comprising the Federal Reserve’s (Fed) monetary policy and the US employment data for January. Adding strength to the cautious optimism of the XAU/USD traders could be China’s return from one-week-long holidays, as well as hopes of a dovish hike from the Fed and downbeat Nonfarm Payrolls (NFP).
It’s worth noting that a slower start to the key week comprising a heavy load of economics also seems to underpin the corrective bounce of the Gold prices from a short-term key support confluence. That said, the metal’s short-term moves depend upon how well the Fed manages to push back the dovish bias despite confirming the nearness to the policy pivot.
Also read: Gold Price Forecast: XAU/USD shows resilience below 200-hour SMA, bulls have the upper hand
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