Gold Price Forecast: XAU/USD Approaches Critical Resistance Amidst Market Focus on US Data – Fusion Indicator Analysis
The trajectory of Gold Price (XAU/USD) exhibits resilience, mounting a two-day ascent, in tandem with a weakened US Dollar and a backdrop of cautious market optimism. A noteworthy resurgence in XAU/USD comes on the heels of a prior week’s recovery, a feat achieved for the first time in five weeks. This upward momentum gains impetus from the prevailing fragility of the US Dollar, further fortified by subdued Treasury bond yields.
It is imperative to underscore the US Dollar Index’s (DXY) alignment with the Federal Reserve policymakers’ commitment to data sensitivity. This alignment is underscored by the discernible impact of mixed US data and a steadfast retreat in US Treasury bond yields, which have recoiled from their recent multi-year peak.
Meanwhile, prospects of augmented stimulus measures from China, through both fiscal and monetary channels, lend buoyancy to Gold buyers, who remain cautiously hopeful.
Yet, a sense of circumspection prevails in anticipation of forthcoming indicators, notably US inflation and employment cues, in addition to China’s activity data. This mood tempers the bullish sentiment for XAU/USD, particularly as it approaches the pivotal $1,940 resistance juncture.
In summation, the Gold Price exhibits a confluence of propelling factors, yet the decisive push past $1,940, in conjunction with the US Dollar’s feebleness and languishing yields, will dictate the course of XAU/USD’s further advancement.
Also Read: Gold Price Prediction: Favorable Tides for XAU/USD Buyers as Market Awaits US Jobs Data
Gold Price: Notable Levels for Observation
As delineated by our Fusion Indicator, the Gold Price navigates within a zone of resistance spanning $40. This critical juncture comes ahead of consequential US inflation and employment indicators scheduled for the week.
Within this context, the immediate recovery path for the Gold Price, at around $1,928, is flanked by the convergence of the one-day R1 Pivot Point and the prior daily high.
Subsequent to this, a twofold impediment emerges in the form of the 200-SMA on the four-hour (4H) chart and the one-month Fibonacci 61.8%. Together, these obstacles stymie the Gold Price’s upward trajectory, stalling it near $1,937.
In the event that XAU/USD sustains its ascendancy beyond the $1,937 threshold, the one-week R2 Pivot Point at approximately $1,945 emerges as the ultimate bastion against the inroads of Gold sellers.
On the contrary, the immediate Gold Price retreat finds hindrance at approximately $1,910, where the convergence of the 5-DMA, the previous daily low, the one-week Fibonacci 23.6%, and the one-day S1 Pivot Point is situated.
Should XAU/USD succumb to the downward pressure and breach the pivotal $1,910 support level, the last line of defense for Gold sellers manifests in the composite resistance near $1,900. This multifaceted obstacle encompasses the 10-DMA, the previous monthly low, and the weekly Fibonacci 161.8%, collectively solidifying a stronghold at this level.