XAU/USD prediction: Can gold overcome bearish forecasts?
XAU/USD prediction: Can gold overcome bearish forecasts?
Despite the fact that gold prices fell on Thursday following the release of U.S. inflation data, the XAU/USD exchange rate recovered its lost ground on Friday.
At the same time, it should be noted that gold's gains were limited by the strengthening of the US dollar on the currency markets due to the rise in U.S. Treasury yields.
The DXY index remains above 105.00, a record high for more than six months, after the release of U.S. inflation, retail sales, and jobless claims data that pointed to the resilience of the world's largest economy.
Traders do not currently expect the Federal Reserve to raise interest rates at its September meeting, but 32% of them are predicting a possible 25 basis point hike at the November meeting. Experts note that these expectations could rise if the U.S. economic momentum seen over the summer continues for another three months.
In that case, analysts believe that gold prices will remain under pressure for a long time.
Gold is now trading at $1,917.17 an ounce, having gained 0.38% since yesterday's session.
If gold can overcome the resistance at $1,936.90, it will have strong upward momentum. On the other hand, if the price falls, gold will meet the support at $1,903.46, and if it breaks this level, it may fall back to $1,848.37.
It should be noted that most experts believe that the precious metals market will maintain a bearish outlook.
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