Daily Price Outlook

During the first half of the European trading session, the price of gold (XAU/USD) managed to maintain a positive stance for the second consecutive day. It is currently trading around $1,925, showing a slight increase of just over 0.10%. However, this positive performance is mainly due to a modest decline in the US dollar and cautious market sentiment that favors safe-haven assets like gold. Nevertheless, the potential for further gains remains limited as traders are awaiting the upcoming interest rate decisions from major central banks scheduled for this week. These decisions are likely to have a significant impact on the direction of gold prices.

Impact of a Weakening US Dollar on Gold Prices

The broad-based US dollar failed to maintain its upward stance, slipping from its recent six-month high. However, this decline in the dollar is good news for the price of gold. Although the losses in the US dollar might not last long as traders are showing reluctance to take big risks. They prefer to wait for the Federal Reserve's (Fed) upcoming monetary policy update. This cautious approach is keeping the US dollar-denominated price of gold from making significant gains.

It is worth noting that the Fed is set to announce the results of its two-day monetary policy meeting soon, and it's widely expected to keep things as they are. However, the market is still considering the possibility of a minor 0.25% interest rate increase later this year, possibly in November or December.

Therefore, investors will closely watch Fed Chair Jerome Powell's remarks during the post-meeting press conference for hints about future interest rate increases. This will significantly impact the short-term value of the US dollar and could influence the price of gold.

Global Factors Driving Gold Demand

Besides that, the ongoing worries about a possible shutdown of the US government and the worsening property problems in China are supporting the demand for safe-haven precious metals. Specifically, China Evergrande Group has postponed a decision on how to deal with its debt issues, adding to concerns in the market.

Therefore, the news of a potential US government shutdown and China's property crisis has boosted the demand for safe-haven assets like gold. Meanwhile, the uncertainty surrounding these issues has made investors seek refuge in gold, leading to an increase in its price as a result of heightened demand for the precious metal.

This week, investors will also pay attention to decisions from other major central banks: the Swiss National Bank (SNB) and the Bank of England (BoE) on Thursday, and the Bank of Japan (BoJ) on Friday. Additionally, on Tuesday and Wednesday, the latest consumer inflation data from Canada and the United Kingdom (UK) could create trading opportunities for XAU/USD.

GOLD(XAU/USD) - Technical Analysis

Gold demonstrates a pronounced bullish inclination, targeting the $1,929 mark. This aligns with the prospects of persisting positive momentum, with an initial goal set at $1,945.20.

Today's forecast leans towards a bullish stance, bolstered by the price movement above the EMA50. However, this momentum might encounter intermittent lateral shifts influenced by the stochastic downturn.

Conversely, it's pivotal to acknowledge that any inability to surpass $1,929 could instigate a price regression towards the $1,913.15 territory. Today's anticipated trading span oscillates between the support at $1,920 and resistance at $1,945.20.

Daily Price Outlook

Gold demonstrates a pronounced bullish inclination, targeting the $1,929 mark. This aligns with the prospects of persisting positive momentum, with an initial goal set at $1,945.20.

Today's forecast leans towards a bullish stance, bolstered by the price movement above the EMA50. However, this momentum might encounter intermittent lateral shifts influenced by the stochastic downturn.

Conversely, it's pivotal to acknowledge that any inability to surpass $1,929 could instigate a price regression towards the $1,913.15 territory. Today's anticipated trading span oscillates between the support at $1,920 and resistance at $1,945.20.

GOLD (XAU/USD) - Trade Idea 

Entry Price – Buy Stop 1932

Take Profit – 1942

Stop Loss – 1925

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$1000/ -$700

Profit & Loss Per Micro Lot = +$100/ -$70

Daily Price Outlook

During the early trading hours of Friday's European session, the gold price (XAU/USD) continued to climb, reaching around $1,920 per troy ounce. However. this upward trend is mainly influenced by positive data from China and new fiscal stimulus measures. Furthermore, gold price gained further strength as the US Dollar (USD) retreated from its six-month high, providing additional support for the precious metal.

Moving on, traders seem cautious to place any strong position ahead of the release of the US preliminary Michigan Consumer Sentiment Index during the North American session.

China's Positive Data Boosting Gold Prices

It is worth noting that China's positive economic data, coupled with the recent move by the People's Bank of China (PBoC) to reduce the Reserve Requirement Ratio (RRR) by 25 basis points (bps), is boosting market optimism and supporting gold prices. In August, China's Retail Sales (year-on-year) surged by 4.6%, surpassing the expected 3.0% increase and improving upon the previous month's 2.5% figure. Besides this, Industrial Production also outperformed, growing by 4.5% in August, compared to the estimated 3.7% rise in July. These robust numbers are contributing to the strength in gold prices.

US Dollar and Economic Data Impact on Gold Prices

The broad-based US dollar has stepped back from its recent six-month high and is now trading around 105.20. However, a significant drop in the dollar is likely because investors are cautious in response to the US Federal Reserve's (Fed) tough stance on monetary policy. In addition, US Treasury yields have bounced back, with the 10-year bond yield reaching 4.30% at the moment. These higher yields could give a boost to the USD.

However, the anticipation of the Fed's commitment to a stricter monetary policy, possibly involving more interest rate hikes and tightening measures, is expected to deter them from making any big investments in assets like gold. In the short term, the dollar's movements will continue to be influenced by monetary policy decisions and Fed communications.

Moreover, the recent US economic data has generally been positive. For the week ending September 8, Initial Jobless Claims came in better than expected at 220,000 new claims, showing a slight improvement from the previous week's 217,000. In August, the Core Producer Price Index (PPI) matched expectations with a 2.2% increase, though it was slightly lower than the previous 2.4% rise. Retail Sales also improved, rising by 0.6% compared to the previous month's 0.5%, beating the expected slowdown to 0.2%.

Thus, these numbers suggest a healthy US economy, which can influence market sentiment and trading decisions. Hence, the positive US economic data may pressure gold prices as it boosts confidence in the economy, reducing the appeal of safe-haven assets like gold.

GOLD(XAU/USD) - Technical Analysis

Gold commenced the trading session exhibiting evident bullish momentum, surpassing the $1,913.15 threshold and nearing the retest of the previously breached neckline of the head and shoulders pattern, which now stands as a pivotal resistance at $1,917.50. It's noteworthy to mention that the 50-day Exponential Moving Average (EMA50) aligns with this resistance level, reinforcing its significance and suggesting the potential for a renewed downtrend.

Given the current scenario, a prudent strategy would be to adopt a wait-and-see approach until there's a decisive breach of one of the critical levels mentioned, thereby offering greater clarity on the impending trajectory. A descent below the $1,913.15 support could indicate the reassertion of the bearish trend, with subsequent objectives at $1,890.00 and then $1,873.50.

Conversely, a breakthrough of the $1,917.50 resistance may negate the adverse implications of the pattern, paving the way for gold to ascend and target gains commencing at $1,929.00. The anticipated trading bandwidth for the day is projected between a support of $1,900.00 and resistance at $1,930.00.

Daily Price Outlook

Gold commenced the trading session exhibiting evident bullish momentum, surpassing the $1,913.15 threshold and nearing the retest of the previously breached neckline of the head and shoulders pattern, which now stands as a pivotal resistance at $1,917.50. It's noteworthy to mention that the 50-day Exponential Moving Average (EMA50) aligns with this resistance level, reinforcing its significance and suggesting the potential for a renewed downtrend.

Given the current scenario, a prudent strategy would be to adopt a wait-and-see approach until there's a decisive breach of one of the critical levels mentioned, thereby offering greater clarity on the impending trajectory. A descent below the $1,913.15 support could indicate the reassertion of the bearish trend, with subsequent objectives at $1,890.00 and then $1,873.50.

Conversely, a breakthrough of the $1,917.50 resistance may negate the adverse implications of the pattern, paving the way for gold to ascend and target gains commencing at $1,929.00. The anticipated trading bandwidth for the day is projected between a support of $1,900.00 and resistance at $1,930.00.

GOLD (XAU/USD) - Trade Idea 

Entry Price – Buy Above 1912

Take Profit – 1925

Stop Loss – 1900

Risk to Reward – 1: 1

Profit & Loss Per Standard Lot = +$1300/ -$1200

Profit & Loss Per Micro Lot = +$130/ -$120

Daily Price Outlook

The gold price maintains its position below $1,913.15, in anticipation of factors that could reinforce the price's trajectory towards the projected downward trend for the day. This inclination is influenced by the previously established head and shoulders pattern. It's worth noting that our projected targets commence at $1,890.00 and may reach down to $1,873.50.

The 50-day Exponential Moving Average (EMA50) backs the forecasted bearish movement, which will persist as the dominant prediction unless there's a breach surpassing the $1,913.15 mark, further solidified if it surpasses $1,916.80 and sustains above these thresholds.

Today's anticipated trading bandwidth is set between a support level of $1,875.00 and a resistance level at $1,920.00.

GOLD (XAU/USD) - Trade Idea 

Entry Price – Sell Below 1912

Take Profit – 1905

Stop Loss – 1917

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$700/ -$500

Profit & Loss Per Micro Lot = +$70/ -$50

Daily Price Outlook

Gold prices (XAU/USD) inched higher during the Asian session on Thursday, marking a potential end to a two-day losing streak that had pushed the precious metal to nearly a three-week low, settling in the range of $1,906 to $1,905. The yellow metal initially made an attempt to recover from its recent losses in the Asian trading hours. However, as the European session began, it faced additional downward pressure, causing it to trade slightly lower, hovering around the $1,900 per troy ounce mark. However, this decline in gold's value is likely attributed to the release of upbeat Consumer Price Index (CPI) data from the United States (US), which has exerted pressure on the precious metal, keeping it near its three-week lows.

Fed Meeting and Economic Data Impact on the US Dollar and Gold Prices

Market participants seems confident that the Federal Reserve will not raise interest rates at its upcoming meeting, as long as there are no big surprises in the US consumer inflation numbers. This makes the US dollar weaker and gives a little boost to the price of Gold price.

According to the US Bureau of Labor Statistics, in August, the Consumer Price Index (CPI) in the US rose to 3.7% from a year ago, slightly higher than expected. The core CPI, which excludes things like food and fuel, increased by 4.3%. This indicates that inflation is still above the desired level, leading to speculation that the Federal Reserve might raise interest rates once more before the year ends. There's a greater than 50% chance this could happen in either November or December. If the Fed does raise rates, it could benefit the US Dollar but might limit the rise in Gold prices. This is something aggressive Gold traders should be careful about.

The US Dollar Index (DXY) is bouncing back, currently trading at around 104.70. This recovery is due to higher US Treasury yields, with the 10-year bond yield sitting at 4.25%. Although, investors are thinking that the US Federal Reserve (Fed) will likely keep its easy-money policies at its September meeting. This cautious approach might put pressure on the US Dollar.

Key Economic Data Releases Ahead: PPI and Retail Sales for August

Looking forward, investors are waiting for the Core Producer Price Index (PPI) and Retail Sales numbers for August in the US. These figures can tell us a lot about how the economy is doing. They'll be especially important for assets like Gold.

GOLD(XAU/USD) - Technical Analysis

The gold price maintains its position below $1,913.15, in anticipation of factors that could reinforce the price's trajectory towards the projected downward trend for the day. This inclination is influenced by the previously established head and shoulders pattern. It's worth noting that our projected targets commence at $1,890.00 and may reach down to $1,873.50.

The 50-day Exponential Moving Average (EMA50) backs the forecasted bearish movement, which will persist as the dominant prediction unless there's a breach surpassing the $1,913.15 mark, further solidified if it surpasses $1,916.80 and sustains above these thresholds.

Today's anticipated trading bandwidth is set between a support level of $1,875.00 and a resistance level at $1,920.00.

Daily Price Outlook

Gold price (XAU/USD) has been unable to halt its ongoing declining streak and continues to face selling pressure for the second consecutive day this Wednesday. It has slipped closer to the monthly low reached yesterday, currently hovering around the $1,910 level during the Asian trading session. However, the bullish bias in the US Dollar was seen as one of the key factor that has been pushing the gold price down. Simultaneously, the looming risks of an impending recession are playing a role in liiting the of losses for XAU/USD. Moreover, investors appear cautious about making strong bids ahead of the upcoming release of the US Consumer Price Index (CPI) data.

US Dollar Gains Momentum, Pressuring Gold Demand

The broad-based US dollar has been gaining momentum after some ups and downs on Tuesday, and this is putting pressure on the demand for gold. It is worth noting that many people believe that the Federal Reserve will stick to its tougher stance on interest rates, which is pushing up US Treasury bond yields and helping the dollar. Many in the market think the Fed will keep interest rates higher for a while and are expecting one more 0.25% increase before the year ends. This confidence in the Fed's approach is boosting the dollar and making gold less attractive to investors.

However, these bets were strengthened by positive US economic data from last week, indicating a strong economy. Furthermore, the slow decrease in inflation means the Fed might keep tightening policies. Thereby, investors keeping a close eye on the US Consumer Price Index (CPI) numbers coming out soon.

Impact of Inflation and Market Sentiment on Gold and the US Dollar

Although, if inflation continues to stay high, it could push the US dollar even higher, possibly reaching a six-month high. This, in turn, would likely put more downward pressure on gold prices. However, if there are worries about China's economy and higher borrowing costs, gold prices might not fall as fast.

Investors are a worried about the economic situation in China and are being careful with riskier investments. So, while the US dollar could rise, gold might not fall as fast if the overall mood in the market remains uncertain.

ECB Interest Rate Decision and Its Potential Impact on Gold Prices

Apart from this, the European Central Bank (ECB) is set to make an interest rate decision on Thursday. This could shake things up for gold prices. People are predicting that the ECB will likely keep their main interest rate at 4.25% because inflation is not surging, and there's worry about the economy slowing down. Therefore, we can expect some significant moves in the gold market after the ECB's decision.

GOLD(XAU/USD) - Technical Analysis

The gold price has decisively breached the $1,913.15 mark, evidenced by its closure below this level yesterday and has embarked on a downward trajectory today. Its next anticipated target stands at $1,890.00. The chart manifests a "head and shoulders" pattern, signaling potential further drops with subsequent goals pinpointed at $1,873.50.

In light of this, we anticipate continued declines in the forthcoming sessions. However, it's pivotal to note that if the gold price surpasses the $1,913.15 and subsequently the $1,916.80 thresholds, this could negate the bearish outlook, prompting a potential intraday recovery. For today, we foresee the gold price oscillating between a support level of $1,875.00 and a resistance barrier at $1,920.00.

Daily Price Outlook

The gold price has decisively breached the $1,913.15 mark, evidenced by its closure below this level yesterday and has embarked on a downward trajectory today. Its next anticipated target stands at $1,890.00. The chart manifests a "head and shoulders" pattern, signaling potential further drops with subsequent goals pinpointed at $1,873.50.

In light of this, we anticipate continued declines in the forthcoming sessions. However, it's pivotal to note that if the gold price surpasses the $1,913.15 and subsequently the $1,916.80 thresholds, this could negate the bearish outlook, prompting a potential intraday recovery. For today, we foresee the gold price oscillating between a support level of $1,875.00 and a resistance barrier at $1,920.00.

GOLD (XAU/USD) - Trade Idea 

Entry Price – Sell Below 1912

Take Profit – 1905

Stop Loss – 1917

Risk to Reward – 1: 1.4

Profit & Loss Per Standard Lot = +$700/ -$500

Profit & Loss Per Micro Lot = +$70/ -$50

Daily Price Outlook

Gold's price (XAU/USD) has been steadily climbing, recently breaking through the $1,923 mark. It's been in the green for two days in a row, though not with tremendous strength. Traders are awaiting the release of the latest US consumer inflation data scheduled for Wednesday. However, the uptick in gold prices was due to the weakening US Dollar, which makes gold more attractive as an alternative investment. Moving on, the upside seems limited ahead of the US CPI on Wednesday and Thursday's ECB policy meeting.

Impact of USD and Economic Data on Gold Prices

Investors are keeping a close eye on the August US Consumer Price Index (CPI) data as it reveals inflation trends. However, the Federal Reserve (Fed) may stick to its current policies because of low inflation and a weak job market, which could make gold less appealing. On the other hand, a strong US dollar can manage higher interest rates and positive economic news. There's a chance the Fed might raise rates by 25 basis points, possibly in November or December, which could limit gold's upward momentum.

Meanwhile, the positive US economic data from last week suggests a strong economy, which means the Federal Reserve (Fed) can maintain higher interest rates for an extended period. This confident stance supports higher US Treasury bond yields and pushed the US Dollar (USD) to a six-month high last week. The positive US economic data indicating a strong economy has led to expectations of the Federal Reserve maintaining higher interest rates, boosting US Treasury bond yields and the US Dollar (USD). However, recent profit-taking and a weaker USD have offered some support to the Gold price, which tends to perform better in a weaker dollar environment.

Gold's Safe-Haven Appeal Amid Economic Worries

Another factor that has been contributing to the rising appeal of gold is the risk-off sentiment in stock markets. The ongoing concerns surrounding China's economic challenges and the increasing costs of borrowing have encouraged many investors to seek the safety of gold. Moving on, traders are taking a cautious approach as they await the release of the US Consumer Price Index (CPI) report and the upcoming European Central Bank (ECB) meeting.

On the flip side, the ECB faces a tough decision of either raising interest rates due to high inflation or holding off due to a weakening Euro Zone economy, and this uncertainity is adding to gold's appeal. Therefore, gold is benefiting from investor caution amid economic uncertainties in both China and Europe.

GOLD(XAU/USD) - Technical Analysis

Gold's price, currently hovering around $1,929.00, struggles to maintain a consistent breach of this level, showcasing a bearish pullback that leans on the intraday bullish trend line evident on the chart. Concurrently, the stochastic indicator is hinting at renewed positive momentum, potentially propelling the gold price to resume its upward trajectory and possibly exceed the aforementioned level, aiming for a subsequent primary target at $1,945.20.

In light of these observations, we anticipate a continuation of the bullish trend in the near term. However, it's essential to recognize that a breach below the $1,919.80 level, followed by a decline to $1,913.15, could deter the anticipated upward movement, pivoting the gold price towards a downtrend. For today, we project the gold price to oscillate between a support level of $1,913.00 and a resistance at $1,940.00.

Daily Price Outlook

Gold's price, currently hovering around $1,929.00, struggles to maintain a consistent breach of this level, showcasing a bearish pullback that leans on the intraday bullish trend line evident on the chart. Concurrently, the stochastic indicator is hinting at renewed positive momentum, potentially propelling the gold price to resume its upward trajectory and possibly exceed the aforementioned level, aiming for a subsequent primary target at $1,945.20.

In light of these observations, we anticipate a continuation of the bullish trend in the near term. However, it's essential to recognize that a breach below the $1,919.80 level, followed by a decline to $1,913.15, could deter the anticipated upward movement, pivoting the gold price towards a downtrend. For today, we project the gold price to oscillate between a support level of $1,913.00 and a resistance at $1,940.00.

GOLD (XAU/USD) - Trade Idea 

Entry Price – Sell Below 1925

Take Profit – 1915

Stop Loss – 1930

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$1000/ -$500

Profit & Loss Per Micro Lot = +$100/ -$50