- The recent pressures on the US dollar helped the price of gold XAU/USD in the upward rebound with gains passing the resistance level of $1949 per ounce.
- This is the highest price for almost a month and settled around the level of $1945 per ounce at the time of writing the analysis.
- The markets are waiting for the rest of the important and influential economic releases.
- The gold market is still supported by a new set of weak US economic data which has reinforced the view that the Federal Reserve Board may have to temporarily stop raising US interest rates.
According to the analysts, "gold is trading at its highest levels for the month, as the weaker-than-expected ADP report continues and the gross domestic product revision continues towards the weaker economic indicators that are likely to keep the Fed unchanged in September."
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Yields on US 10-year bonds fell to their lowest levels since August 11, while the US dollar fell to a two-week low after US gross domestic product data showed economic growth slowed in the second quarter. The decline in job opportunities in the United States has led to an increase in morale.
Overall, bets on the Fed leaving US interest rates unchanged in September rose to nearly 91%, from 88.5% before the data, while bets on a pause in November rose to nearly 59% from 52% on the day The former, according to CME Group's FedWatch tool.
Investors are now awaiting the Consumer Price Index today, Thursday and the US Non-Farm Jobs (NFP) report on Friday. And in general, last week's smart rally indicates that traders were slightly short. The market will tighten ahead of key inflation data and payrolls. and that returning above the $1980 resistance level is necessary to awaken the positive spirit of the bulls.
For his part, Ricardo Evangelista, chief analyst at Active Trades, said in a note: "Bad news for the economy will be good news for gold."
Today's XAU/USD Gold Price Predictions:
According to the performance on the daily chart below, the price of gold XAU/USD is in the phase of breaking the downward trend. The move above the resistance levels of 1928 and 1945 dollars will motivate the bulls to further control the direction.
If the pressure on the US dollar continues, there may be an opportunity to move towards the resistance 1972 and 1985 dollars respectively. This is especially since the gold market receives an additional strong wound from the growing global geopolitical tensions and fears of the recession of the Chinese economy. If the dollar received a positive wound from the preferred inflation reading of the American Federal Reserve Bank, along with the US non-agricultural job numbers, it cannot be ruled out that it will return to the vicinity of the $1910 support level again.
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