Forecast for the price of gold: XAU/USD gives up and reverts to the $1,810 range

XAU/USD surged to a new three-week high before swiftly settling back down.Following Wall Street's opening, XAU/USD surged to a new three-week high of $1,833.32 per troy ounce on higher market sentiment that kept market participants in risk-on mode. Stock jumped despite weak US data, while the dollar strengthened despite higher US Treasury yields.

• US Treasury yields rise amid light trading and uneven Wall Street activity.
• In light of falling US inflation and optimism for growth, the US dollar is weak.

 

The dazzling metal's bullish impetus waned as the day went on, and it returned to the current price range of $1,810 while maintaining its long-term higher tendency. It is important to note that volumes are modest as the year comes to a close, with the majority of the major pairs and assets remaining at familiar levels despite a few transient directional increases.

US Dollar down amid an upbeat mood

 

The core PCE Price Index, which was issued last Friday, shows that US inflation is continuing to decline, which is good news for the market. The fact that China is relaxing COVID-related limitations further served as a further motivator for the positive mood.

Technically, the pair continues to develop above all of its moving averages, with the 20 Simple Moving Average (SMA) extending its rise over the 200 SMA, in keeping with the predominate positive trend, according to marketrightside.com's senior analyst. Meanwhile, technical indicators began to rise from about their midlines, providing strongly bullish upward slopes within positive levels.