Gold Price Forecast: Is XAU/USD Going After 1,835?
Gold Price, Gold was up in Asia on Monday morning, reaching a two-month high. The yellow metal gained ground when the dollar fell. Gold futures were up 0.18 percent at $1,820.10. They stayed above $1,800 after reaching their best level since September 7 earlier in the session. The greenback, which typically trades in the opposite direction of gold, fell slightly on Monday.
The US nonfarm payroll fails to weigh on gold prices
Investors reviewed Friday’s US job report, revealing that nonfarm payrolls climbed by 531,000, a higher than projected reading. In October, the unemployment rate slipped to 4.6 percent. “There is no doubt” that the labor market in the United States is tight, according to Esther George of the Kansas Fed on Friday. George added that she would also be watching wage pressures and inflation expectations closely to see how close the economy is faring towards the Fed’s aim of total employment.
The US Congress enacted a $1 trillion infrastructure bill
The United States Congress enacted a $1 trillion infrastructure bill on the same day to restore the country’s airports, highways, and bridges. Chinese trade data released on Sunday indicated that exports increased by 27.1 percent year on year in October in the Asia Pacific region. Imports increased by 20.6 percent year on year, with the trade balance standing at $84.54 billion.
Gold Price, The Bank of Japan’s (BoJ) ultra-easy monetary policy
Meanwhile, the Bank of Japan sees the need for ultra-easy monetary policy because inflation is only gradually growing and wage growth remains weak, according to a summary of thoughts from its October meeting released on Monday.
During the festive season last week, physical gold demand in India – one of the top consumers, was high.
Gold Price Forecast – Is XAU/USD Going After 1,835?
Gold’s long-term outlook is optimistic. Over the last two weeks, the precious metal has begun a bullish trend at $1,717. The bulls dominated over the bears, which means there were more buyers in the market, and the price rose to test the July high of $1,831.
Early last week, the market was pessimistic, and the price fell and tested the $1,750 barrier. The US Non-Farm Payroll Fundamental ignited the upward momentum, and the price reversed towards the $1,831 level near the end of the previous week’s market.
The price is trading above the 9-period and 21-period exponential moving averages, indicating a bullish trend. When the bulls’ pressure increases further and breaks through the $1,831 resistance level, the price will target the $1,873 and $1,908 resistance levels. If the $1,831 resistance level holds, the yellow metal may fall to the $1,796, $1,750, and $1,717 support levels. Good luck!
