Gold Price Forecast: XAUUSD jumps to fresh 5-week high, approaches $1700 amid a soft US dollar

• Gold price creeps higher amidst the lack of US economic data as investors brace for US elections and October’s CPI.
• US Treasury bond yields are lower on the day, while expectations for a 50 bps rate hike by the Fed stood above 50%.
• Gold Price Analysis: Neutral-to-upward biased and might test $1700 in the short term.

Gold price is subdued as the North American session begins, extending its gains due to a bid US Dollar as midterm elections in the United States increased risk appetite while rising US Treasury yields are a headwind for the precious metals segment. Hence, the XAUUSD is trading at $1694.60, slightly above the 50-day Exponential Moving Average (EMA), down by 0.04%.

Gold price recovers its bright, though fluctuating, as traders brace for US midterm elections

Sentiment is mixed, as US equities fluctuate at the New York open. The lack of meaningful economic data, aside from the US midterm elections, with the US House and the Senate at stake, is grabbing the headlines. Also, October inflation figures of the United States, to be released on Thursday, would be the barometer for investors of what the Federal Reserve would decide in the December meeting.

Aside from this, US Treasury yields, mainly the 10-year T-bond yield is, retreating from weekly highs of 4.24% down to 4.161%. Meanwhile, expectations for the Federal Reserve’s December meeting remain tilted towards hiking 50 bps, as shown by the CME FedWatch Tool at 52%. The odds for a 75 bps increase are 48%, unchanged from a day ago.

The US Dollar Index, which tracks the buck’s value against G8 currencies, dives 0.44%, at 109.74, though it should be noted that it has fallen from daily highs at around 110.610.

A light US economic docket revealed the US Redbook Index, which came at 7.6% below its previous reading, while the US IBD/IPP Economic Optimism for November dived from 41.6 to 40.4.

Gold (XAUUSD) Price Analysis: Technical outlook

XAUUASD suddenly jumped unexpectedly in the last 5 minutes, recording a daily high of $1698, shy of breaking the $1700 figure, which could open the door to pose a challenge to the 100-day Exponential Moving Average (EMA) at $1716.96. If the XAUUSD clears the latter, that will open the door toward the 200-day EMA at $1805.

On the other hand, key support levels lie at the 50-day EMA at $1672, ahead of the November 8 daily low at $1664.80 and the $1650 figure.