Gold Price Forecast: XAU/USD under pressure after US data, looking at $1,800
24.02.2023, 15:15

Gold Price Forecast: XAU/USD under pressure after US data, looking at $1,800

  • US Dollar and yields rise further after US economic data.
  • US Core PCE rises above expectations in January.
  • Gold hits fresh weekly lows near $1,810.

Gold prices dropped further after the beginning of the American session amid a stronger US Dollar and higher Treasury bond yields following data that showed the core PCE rose at the highest rate in six months, above expectations.

XAU/USD bottomed at $1,809/oz, the lowest level since December 29. It is hovering around the lows, looking at the $1,800 area. The 20-week Simple Moving Average awaits at $1,797. Bulls need to recover the $1,820 area in order to alleviate the bearish pressure.

The downside extended following the January Personal Income and Spending. The numbers came in above expectations. Market participants looked into inflation numbers. The Federal Reserve’s preferred inflation gauge, the core PCE rose by 0.6%, to an annual rate of 4.7%, up from the 4.6% of December and against expectations of a decline.

The Dollar gained momentum after the economic numbers, US yields soarrf and equity prices tumbled. The context added pressure to gold that is fighting to hold above $1,810. The 2-year Treasury yield is at 4.79%, the highest since November and the 10-year is at 3.93%.

Technical levels

 

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