- At the beginning of this week's trading, XAU/USD gold futures hovered around $2000.
- The XAU/USD gold price gains in the market did not exceed $1990 an ounce, despite the US dollar's gains halting.
- The yellow metal prices found support for the weakness of the US dollar.
- Gold prices have been trending lower since touching all-time highs as investors continue to book profits. But prices have rebounded as recession fears grow.
According to trading, gold futures contracts rose to 1999.70 dollars an ounce. In general, gold prices are retreating from a weekly loss of about 0.7%, but they have risen by about 10% since the beginning of the year 2023.
In almost the same path. Silver, gold's sister commodity, rose above the $25 level. Overall, the price of the white metal was flat last week and is still up more than 4% so far this year.
XAU/USD gold prices settled higher on the back of a sliding US dollar and disappointing economic news.
According to trading, the US Dollar Index (DXY), a measure of the US currency against a basket of other major currencies, fell to 101.36, from an opening of 101.2 on Monday. The index fell 0.7% last week, adding to its year-to-date loss of 2.1%. Generally a weak US dollar is beneficial for dollar-denominated commodities because it makes it cheaper for foreign investors to buy them. Commenting on the performance, David Meagher, director of metals trading at High Ridge Futures, said: "This market is in the water in the short term, waiting for the next economic data that could shake it in one direction or another."
Financial markets were mixed after new data showed a slowdown in the US economy. The Dallas Fed's overall business activity index for manufacturing shrank for the 11th straight month, falling to -15.7 in March. It also represents the lowest reading since December due to lower production, new orders, growth rate, shipments and lower working hours. Employment expansion slowed while capacity utilization rose. The forecast uncertainty level rose to 24.7. The Chicago Fed's National Activity Index was unchanged at -0.19, worse than the market's estimate of -0.02.
This week, additional data will be released for the US central bank, regional housing orders and durable goods. In addition, the GDP growth rate for the first quarter, which is expected to come in at 2%, will also be announced.
Other factors affecting the gold market
US Treasury market yields were mostly in the red across the board, with the benchmark 10-year yield falling more than five basis points to 3.517%. Bond yields for the month increased by 11.8 basis points to 3.466%, while the 30-year yield fell five basis points to less than 3.73%. As for other metals markets, copper futures fell to $3.959 a pound. Platinum futures fell to $1,100.10 an ounce. Palladium futures fell to $1,525.00 an ounce.
XAU/USD gold price forecast today:
According to the performance on the daily time frame chart. The bullish trend of XAU/USD has not changed but the price is currently undergoing a downward correction. It appears that the market is pricing in another rate hike by the Fed and is currently selling the rumor. We believe that gold prices will continue their upward trend and the current downward correction is an opportunity for traders to enter more long positions. Gold investors can wait for the bullish reaction near the $1953 level. On the upside, the target will be achieving a new record high, if stability returns above the $2000 resistance.
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