Gold Price Forecast: XAU/USD rises to $1,793 after US data, neutral for the week

• Gold rebounds from weekly lows after being able to hold above $1,770.
• Wall Street indices drop more than 1% on Friday, adding to weekly losses.
• US data: Preliminary November S&P Global PMI below expectations.

Gold price rebounded further from weekly lows following the release of the US S&P Global PMI report, hitting a fresh daily high at $1,793. It is about to end the week at the same level it had seven days ago.

Moving away from $1,770

XAUD/USD broke above $1,785 after the release of the US S&P Global PMI report that came in below expectations. According to the preliminary report, in December the S&P Global Manufacturing PMI fell from 47.7 to 46.2, against market consensus of 47.7. The S&P Global Services PMI fell unexpectedly from 46.2 in November to 44.4 in December.

The economic numbers weighed on the US Dollar that pulled back across the board momentarily. The decline in equity prices in Wall Street limited the downside for the greenback.

The $1,800 area still critical

As of writing, XAU/USD is hovering around $1,790 around the same level it had a week ago. Gold price managed to remain above the key short-term support of $1,770 on Friday.

The weekly chart shows Gold price unable to post a close above $1,800. Technical indicators are starting to favor a correction in the short term. It the yellow metal manages to firmly break $1,800 with a confirmation close, it would suggest more gains ahead toward $1,860 initially and then an approximation to $1,900.

XAU/USD weekly chart