Gold Price Forecast: XAU/USD marches towards $1,750 on poor consensus for US Durable Goods Orders

• Gold price is aiming to recapture the immediate hurdle of $1,750.00.
• Investors are focusing on the US Durable Goods Orders data for further cues.
• The downbeat US PMI is the consequence of hiking interest rates by the Fed vigorously.

Gold price (XAU/USD) has attempted a rebound after a mild correction to near $1,746.00. A rebound move is less-confident, at the press time, but is expected to gain momentum as investors are likely to discount poor consensus for the US Durable Goods Orders data.

Earlier, the gold prices displayed a sheer upside after a contraction in Purchasing Managers Index (PMI) numbers. The Manufacturing PMI contracted to 51.3 from the estimates of 52 and the prior release of 52.2. The Services PMI remained more vulnerable and contracted dramatically to 44.1 against the forecast of 49.2 and the prior release of 47.3.

This is a warning signal for the Federal Reserve (Fed) to slow down the pace of hiking interest rates as the unavailability of cheap money has restricted the private sector from exploiting entire production capacities.

Going forward, the US economy will see another consequence of price pressures in the form of a decline in the overall demand. Soaring price pressures have resulted in higher payouts for households. Due to the inevitable demand for necessity goods, households are surrendering demand for durable goods, which may weigh pressure on the US dollar index (DXY) further.

Gold technical analysis

On an hourly scale, gold prices are attempting to cross the 61.8% Fibonacci retracement (placed from July 27 low at $1,711.53 to August 10 high at $1,807.93) at $1,748.38 comfortably. The 20-and 50-period Exponential Moving Averages (EMAs) are on the verge of providing a bullish crossover at $1,744.38.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which indicates more upside ahead.

Gold hourly chart