Gold Price Forecast – Who’s Up for a Sell Trade at $1,827?

Gold Price Forecast, GOLD  prices closed at $1826.45 after setting a high of $1828.15 and a low of $1813.80. Gold surged for the third consecutive session on Monday and reached a two-month high level; bolstered by a retreat in the dollar and persistent inflation concerns after key central banks indicated interest rates would remain low in the near term.

The safe haven metal was also higher on Monday amid the latest comments; from Fed policymakers. The Vice-Chairman of the U.S. Federal Reserve, Richard Clarida, said that inflation was running well above the target level that was desirable for the central bank and that if this continued to be at the same level or above; then it would signal a policy error.

Gold Rate Live

Clarida also said that the price pressures are more intense than expected and will; be higher than the Fed’s most recent forecast this year. These remarks follow the Fed’s; announcement from last week about keeping its benchmark interest rate near zero for the time; being and that it will begin tapering the number of bonds it purchases each month later this month.

Fed Announced Reduction in QE Program by $15 Billion

Gold Price Forecast, The Fed announced that it would reduce the program by $15 billion per month for at least November and December and continue monthly based on market conditions. Clarida did not specify when the Fed intends to raise interest rates. Meanwhile, Chicago Federal Reserve Bank President Charles Evans repeated his view on Monday that the current surge in inflation is largely temporary and will eventually fade as supply-side pressures are resolved. The rising concerns about inflation articulated by the Fed’s most dovish policymaker were notable but not very surprising as the price pressures have stayed well above the Fed’s target of 2%.

Moreover, Michelle Bowman, Federal Reserve Governor, mentioned a range of economic and financial stability risks posed by the housing market, particularly rising demand and a slow construction pace, which put upward pressure on prices. In her remarks, Bowman did not comment on broader monetary policy or the economic outlook. All these comments from Federal Reserve officials had a mixed impact on the U.S. dollar, which ultimately pushed gold prices higher. Analysts believe that gold is getting support from the ultra-low interest rate environment and higher inflation concerns.

Gold Price Forecast – XAU/USD Struggling below $1,827?

Gold Price Forecast, Gold is trading with a bullish bias at the 1,823 level facing strong resistance at the 1,827 level. On the 4-hour timeframe, XAU/USD is trading with a bullish bias, maintaining an upward channel. A break above the 1,827 level could lead GOLD towards the next resistance level of 1,834.

Daily Technical Levels

Support Resistance
1817.45 1831.80
1808.45 1837.15
1803.10 1846.15
Pivot Point: 1822.80Conversely the support level stays at the 1,814 level, and the violation of this level exposes the metal towards the 1,801 level. The RSI and stochastic are in an overbought zone, and the closing of candles below the 1,827 level exposes the metal price towards the 1,814 level. Let’s consider taking a sell trade below 1,827 and buying above the same. Good luck!