- Gold price forecast remains neutral as the safe-haven assets await the U.S. NFP and Unemployment rate figures.
- The S&P500 (SPX) Index soared by 0.45% at 4,415, while the Dow Jones Industrial Average is up 0.43% at 35,082.
- The Forex trading market participants may sell below $1,812 to target the $1,805 levels on Tuesday.
During Tuesday’s European session, gold couldn’t stop its bearish streak and still consolidating near the $1,800. It’s maintaining a choppy trading range of $1,808.32 – $1,814.02. Gold price forecast remains neutral as the safe-haven assets await the U.S. NFP and Unemployment rate figures. The gold trading sentiment is supported amid progressing talks over President Joe Biden’s infrastructure spending bill.
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Dip in COVID-19 Cases Drag Gold Lower to $1,809.
The second day of decline in the new covid infections in Australia adds further optimism to the market trading sentiment. This diminished the demand for safe-haven assets and added to the gold losses.
The sluggish data from the U.S., China, and Aussie housing data probe the market risk-off mood. Thus, investors are looking to enter safe-haven markets, stabilizing gold prices.
Furthermore, the bearish U.S. dollar, triggered by the risk-off mood, kept a lid on any further losses for the gold.
Progression Talks Over Infrastructure Bill Boost Stock Market
Despite downbeat economic data, the market’s trading sentiment managed to extend its previous-day positive performance and remained supported on the day. The S&P500 (SPX) Index soared by 0.45% at 4,415, while the Dow Jones Industrial Average is up 0.43% at 35,082. The Nasdaq Composite is gaining positive traction near 14,995.
However, the market trading sentiment got lift by the progression talks over President Joe Biden’s infrastructure spending bill. Furthermore, the upticks in the market trading sentiment bolstered after global rating giant Moody’s remarks.
Moody said that Asia-Pacific’s economic activity is expected to recover strongly in 2021 and 2022 compared with recent performance. The optimistic tone around the global equity markets undermined the safe-haven gold prices.
Bearish U.S. Dollar to Underpind Gold Over $1,806
At the USD front, the broad-based U.S. dollar failed to recover its previous-day losses. It traded in a bearish zone as the market’s upbeat mood tends to undermine the safe-haven dollar.
The bearish U.S. dollar could also be tied to the reports from Fed Chair Jerome Powell. Federal Reserve Chairman indicated that interest rate hikes were still a long way away.
In addition to this, the downbeat U.S. PMI data put some further burden on the U.S. dollar. Thus, the declines in the U.S. dollar helped gold prices to limit their deeper losses as gold is inversely related to the U.S. dollar.
Coronavirus (COVID-19) & Downbeat Economic Data
The rising covid cases globally keep questioning the market risk-on sentiment. It’s keeping bearish pressure on the precious metal gold. The downbeat data from China and the U.S. leave a negative impact on the market trading sentiment, boosting the safe-haven gold price.
We don’t have significant economic data due from the U.S. today. Therefore, traders will focus on the broader market risk sentiment, influencing the safe-haven gold prices.
Gold XAU/USD Forecast – Technical Levels: Eyes on $1,806
S3 1785.06
S2 1798.94
S1 1805.98
Pivot Point 1812.82
R1 1819.86
R2 1826.7
R3 1840.58
Gold Price Forecast – Daily Technical Analysis: 50 EMA Crossover
Gold price forecast remains bearish below the $1,812.82 pivot point level. On the 4-hourly chart, the yellow metal has formed an ascending triangle pattern. The triangle covers a wide area, extending support at $1,806 level along with resistance at $1,833.
However, the 50 days EMA (exponential moving average – red line) will be extending an immediate hurdle at the $1,814 level. Bullish crossover above 50 EMA can lead the gold price towards $1,820 and $1,833.
Since the leading indicator Stochastic RSI is trading at 19.97, the selling trend remains strong. Thus, the breakout of the upward trendline at the $1,806 level can extend selling until $1,793.
The Forex trading market participants may sell below $1,812 to target the $1,805 levels on Tuesday. Conversely, buying limit can be placed around $1,805 level today. All the best!
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