Gold Price Forecast: XAU/USD juggles around $1,840 amid mixed market mood, US Services PMI in focus

• Gold price is oscillating near $1,840.00 as the risk profile looks obscure ahead of US Services PMI.
• More rate hikes from the Fed would dent the confidence of US firms.
• Gold price is forming an Inverted H&S pattern that indicates a bullish reversal.

Gold price (XAU/USD) is displaying back-and-forth moves around $1,840.00 in the Asian session after a gradual move from $1,830.00. The precious metal has turned sideways amid mix market mood. The US Dollar Index (DXY) looks vulnerable above 104.80 and is likely to display a downside move further.

Long liquidations in the S&P500 futures have deepened in the Asian session as investors are getting anxious ahead of the release of the United States Services PMI by the Institute of Supply Management (ISM). The 500-US stocks basket futures displayed a sheer recovery on Thursday as geopolitical tensions between the US and China eased.

China’s Vice Commerce Minister said in a statement on Thursday, “China is willing to conduct candid consultations with the US to reduce restrictions on bilateral trade and investment.” He further added, “Need to create a stable and predictable economic and trade environment between China and US to enhance the confidence of business cooperation.”

Meanwhile, fears of more rates from Federal Reserve (Fed) chair Jerome Powell expected in the March monetary policy are not fading as further rate hikes could dent the confidence of producers. Also, the strong labor market could soften if lay-off programs in the technology firms stretch to other sectors.

Gold technical analysis

Gold price is forming an Inverted head and Shoulder chart pattern that indicates a prolonged consolidation and a breakout of the same confirms a bullish reversal. The neckline of the Inverted H&S chart pattern is plotted from February 20 high around $1,848.00. The 50-period Exponential Moving Average (EMA) is acting as a major support for the Gold bulls.

A break into the bullish range of 60.00-80.00 by the Relative Strength Index (RSI) (14) will trigger the upside momentum.

Gold hourly chart