The continued weakening of the price of the US dollar remains supportive of the price of an ounce of gold XAU/USD in moving towards important resistance levels.
- We tested the level of 1948 dollars per ounce, the highest price of the yellow metal in nine months and is stable around it at the time of writing the analysis.
- Gold futures settled higher, making gains for the fifth session in a row, as the dollar weakened amid growing hopes that the Federal Reserve will slow the pace of raising American interest rates.
- The US dollar index DXY is stable around the 101.62 support level at the time of writing its lowest analysis since mid-2022.
Silver futures closed higher at $23.941 per ounce, while copper futures settled at $4.2445 per pound. In general, the focus is now on the US GDP data for the fourth quarter scheduled for Thursday, which may determine the tone of the Federal Reserve Bank at the policy meeting from January 31 to February 1.
Wall Street markets are shedding most of the losses driven by a dire sales warning from Microsoft, with traders now turning their attention to Tesla's earnings report after the market close. The S&P 500 nearly erased losses of nearly 2 percent earlier in the session. The shares of the electric car giant Elon Musk fell - and his results may lead to injecting another dose of volatility. Options pricing suggests the stock could swing as much as 11 percent in either direction after the report, which would be the biggest such move since 2021, according to data compiled by Bloomberg.
The S&P 500 index is headed for the best January since 2019 driven by expectations that the Federal Reserve Bank will adjust the rise in US interest rates. The stock recovery came at a time when the American economy was headed for contraction - which paved the way for sales. According to the analysts, investors should use any increases to reduce exposure to the stock market, and added that the slowdown in economic growth caused by the tightening of the Federal Reserve Bank and its effect on corporate profits is likely to be priced into stocks over the next several months.
In other corporate news, shares of AT&T Inc rebounded after beating analysts' profit estimates even as the company's 2023 outlook came in short of Wall Street targets. And Boeing Co posted a surprise loss through the end of 2022 -- its sixth consecutive quarter of money losses -- as higher costs slowed the planemaker's recovery even as a wave of plane delivery delays boosted cash.
Finally, the Canadian dollar fell as the Bank of Canada raised interest rates for the eighth consecutive and possibly final time - saying it expects to move to the margin and balance the impact of its rapid tightening.
Today's XAU/USD Gold Price Predictions:
The general trend of the XAU/USD gold price is still rising. The continuation of the weakness of the US dollar amidst the negative results of the expected US economic data today and tomorrow may push the bulls to move towards the historical peak of $2000 per ounce. This may technically happen if the price of gold XAU/USD moves towards the resistance levels of 1962 and 1985 dollars respectively. Consider that the recent gains have moved the technical indicators towards levels of overbought. In case the dollar received a positive wound, the price of gold may be exposed to sales operations to reap quick profits and may move towards the support levels of 1924, 1910 and 1882 dollars respectively.
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