Gold Price Forecast: XAU/USD reverses intraday losses from $1630, US Durable Goods Orders buzz

• Gold prices have rebounded firmly from $1,630.00, which are supporting a further pullback move.

• The risk-off market mood pushed the DXY above 114.50.

• Weaker forecasts for US Durable Goods Orders data will restrict the DXY’s upside.

Gold price (XAU/USD) has recovered the major portion of losses recorded in the Tokyo session. The precious metal declined sharply to near $1630.00 but recovered firmly and is indicating a formation of buying tail, which indicates a strong resoponsive buying structure. The yellow metal is attempting to shift into the prior balanced area placed in a narrow range of $1,640.00-1,649.06.

Meanwhile, the US dollar index (DXY) moved sharply to 114.52 as the risk porfile turned soar on China’s leader Xi Jinping house arrest and Russian Federation’s warning of nuclear attack in retailation to western sanctions. The G-7 cartel is aiming to cripple the Russian economy by enforcing spree of western sanctions so that that trading structure could get demolished.

The firmer move by the DXY towards 114.52 has also picked offers too ahead fo US Durable Goods Orders data. As per the consensus, the economic data will decline by 1.1% against the prior dcline of 0.1%. The impact will mainly come from weaker demand of gasoline and a 20 basis point (bps) decline in headline Consumer Price Index (CPI) in August reading.

Gold technical analysis

On an hourly scale, the gold prices are attempting to hit the 20-period Exponential Moving Average (EMA) at $1,650.54. If the precious metal manages to overstep the 20-EMA, it will find major barricades around the horizontal resistance placed from September 16 low at $1,654.41.

The Relative Strength Index (RSI) (14) is oscillating in a 20.00-40.00 range, which indicates that the downside momentum is still intact.

Gold hourly chart