[ad_1]
- At the start of this week’s trading, gold futures struggled to hold $1,920 an ounce as it snapped its longest weekly winning streak since August 2020.
- Despite the weekly decline, the gold price XAU/USD is poised for a strong performance in January, driven by a weaker US dollar and the possibility of a temporary halt in the cycle.
- According to the trades, the price of gold XAU/USD has fallen to the level of $1920 per ounce and last week it recorded a level of $1949 per ounce, the highest it has been in nine months.
In general the XAU/USD gold prices are on their way to achieve monthly gains of 5%. Over the past three months, the price of the precious metal has risen by about 18%. In the same performance, the prices of silver, the sister commodity of gold, turned positive in the afternoon of Monday’s trading session. Silver futures rose to $23.64 an ounce. Despite the huge end-of-year rally in 2022, silver prices will post a monthly decline of more than 2%.
XAU/USD gold prices suffer from a modest decline as investors take profits for the next month’s contract. Investors are also looking ahead to the important Federal Open Market Committee (FOMC) policy meeting this week, where US interest rates are expected to rise by 25 basis points. Federal Reserve officials may also signal a pause in its tightening efforts amid slowing inflation.
Gold is generally sensitive to interest rate policy because it can affect the opportunity cost of holding the bullion that does not yield a return.
The metals market was also hit by the strong dollar, with the US Dollar Index (DXY) up 0.35% to 102.29, from an open of 101.92. The index is also preparing for a January slide of about 1.2%. In general, a stronger profit is bad for commodities priced in dollars because it makes their purchase more expensive for foreign investors.
For other metal commodity prices, copper futures fell to $4.1825 per pound. Platinum futures rose to $1017.60 per ounce. And palladium futures rose to $1629.50 an ounce.
Today’s XAU/USD Gold Price Predictions:
Gold sales are described as limited. The general trend for gold prices XAU/USD is still upward as long as it is stable above the resistance of $1900 per ounce. As I mentioned before the prices may remain stable and in a limited range until the markets and investors react to the important and influential events this week led by Realeat, The American Federal Reserve Bank, the European Central Bank and the Bank of England ended with the US jobs numbers. The decline of the US dollar and increasing fears of a global recession will give gold more positive momentum to complete the upward path and the bulls’ closest targets are currently $1938 and $1965, the latter important to increase expectations towards the next historical psychological resistance of $2000 per ounce.
According to the performance on the daily chart below, in the event that gold prices XAU/USD have stabilized below the support level of $1880 per ounce, this is a primary breach of the current trend.
New week. New trading opportunities. Are you ready to trade today’s Gold forecast? Here are the best Gold brokers to choose from.
[ad_2]