Gold Price forecast; The yellow metal is one of the biggest trading commodities in the world. XAUUSD Price at this time in the world is $1,679.65.
Loretta Mester of the Federal Reserve completely agreed with the harsh attitude.
Following the opening of Wall Street, US Treasury yields decreased, which weakened the US currency.
XAUUSD recovers from a crucial Fibonacci level, but it’s unclear whether it will continue to advance.
Due to market participants’ decision to sell the US dollar during US trading hours, XAUUSD is up on Tuesday.
Due to rising government bond yields, the US dollar increased throughout the first half of the day.
Following a protracted holiday, US Treasury rates increased, with the 10-year note paying as high as 4%. However, declining yields following the opening bell on Wall Street reduced demand for the USD safe haven currency.
The US indices are trading in a range; while the Dow Jones Industrial Average is firmly higher, the S&P 500 is still below its support level, and the Nasdaq Composite is only up a meagre 15 points.
High-yielding assets benefited from the lack of new news rather than rising on positive ones as a result of the risk-averse sentiment that was prevalent on Monday.
The well-known hawkish message was reaffirmed on Tuesday by US Federal Reserve Cleveland President Loretta Mester.
Mester stated that the Fed’s failure to raise rates sufficiently is one of the biggest risks, and she added that she does not anticipate the Fed to cut rates in 2023. Last but not least, she said that combating inflation is painful “but must happen.”
Next Thursday, an update on inflation figures will be released by the US. The consumer price index for September is anticipated to have increased at an annualised rate of 8.1%, down from 8.3% in the preceding month.
But core inflation, which excludes volatile food and energy prices, is anticipated to have risen by 6.5%, up from the previous 6.3%.
Short technical view of the price of XAUUSD:
Given that the brilliant metal is once again above a flat 20 SMA on the daily chart, the XAUUSD pair may continue to rise.
The longer moving averages continue to move in a decisively bearish direction above the current level, but the technical indicators have moderated their drops and have begun to rise slightly within neutral levels.
The same chart demonstrates that buyers have come into the market for the pair at $1,658.45, which is the 61.8% Fibonacci retracement of the most recent bullish run between $1,614.81 and $1,729.54.
At $1,685.55, the 38.2% retracement presents direct opposition. Any level that is broken through should result in the XAUUSD moving in the desired direction.
The likelihood of a positive extension is restricted in the near term and on the 4-hour chart. Technical indicators aim higher but maintain a lower position below their midlines, reversing oversold circumstances.
The price of the pair has risen over a flat 100 SMA but is still below a 20 SMA that is strongly bearish and has recently crossed below the 200 SMA, both of which are above the indicated Fibonacci resistance level.
Support levels are 1,672.10, 1658.45, and 1,645.20.
R-values: 1,685.55, 1,694.30, 1,702.40