Gold Price Forecast: XAU/USD holds below $2,030 ahead of the PBoC rate decision

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  • Gold price loses ground near $2,027 on robust US data.
  • US University of Michigan consumer sentiment rose to its highest since July 2021, coming in at 78.8 in January vs. 69.7 prior.
  • Investors await the People’s Bank of China interest rate decision on Monday.

Gold price (XAU/USD) drifts lower to $2,027 during the early Asian session on Monday. The robust US economic data have triggered the expectation that the Federal Reserve (Fed) might delay interest rate cuts, which boost the US Dollar (USD). The key support level of yellow metal is seen at the $2,000 psychological mark. The US Core Personal Consumption Expenditures Price Index (Core PCE) for December on Friday might trigger volatility in the market.

US consumer sentiment improved in January, hitting the highest level since July 2021. The University of Michigan's preliminary reading on the consumer sentiment index arrived at 78.8 in January versus 69.7 in December, better than the market expectation of 70.0.

On Friday, San Francisco Federal Reserve Bank President Mary Daly stated that the central bank has a lot of work left to do on bringing inflation back down to the Fed's 2% target and that it’s premature to think about interest rate cuts. Nonetheless, two key events this week might determine at least which way central bank policymakers could lean on policy. The US GDP growth numbers will be due on Thursday, and the Core PCE will be released on Friday. The weaker US data is likely to convince the Fed to tilt toward the dovish side and cap the downside of the gold price.

The People’s Bank of China is expected to leave the benchmark one- and five-year loan prime rates (LPR) unchanged at 3.45% and 4.20%, respectively. Bearish sentiment toward China has intensified as the latest economic data indicates that the world's second-biggest economy continues in a slump. Any negative development surrounding Chinese economy could drag the gold price lower, as China is one of the world's largest gold consumers. 

 

XAU/USD

Overview
Today last price 2027.72
Today Daily Change -0.68
Today Daily Change % -0.03
Today daily open 2028.4
 
Trends
Daily SMA20 2043.59
Daily SMA50 2024.21
Daily SMA100 1973.68
Daily SMA200 1963.98
 
Levels
Previous Daily High 2039.5
Previous Daily Low 2020.47
Previous Weekly High 2058.67
Previous Weekly Low 2001.9
Previous Monthly High 2144.48
Previous Monthly Low 1973.13
Daily Fibonacci 38.2% 2032.23
Daily Fibonacci 61.8% 2027.74
Daily Pivot Point S1 2019.41
Daily Pivot Point S2 2010.43
Daily Pivot Point S3 2000.38
Daily Pivot Point R1 2038.44
Daily Pivot Point R2 2048.49
Daily Pivot Point R3 2057.47

 










 

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