GOLD PRICE FUNDAMENTAL FORECAST – TALKING POINTS
- XAUUSD has tiptoed around the $1,300 price area for most of 2019 but its next move could be telling if gold’s long-term uptrend will prevail or if the precious metal will start breaking lower
- Fundamental factors like demand for the anti-risk asset and the Federal Reserve’s latest view on the economy could serve as possible catalysts that dictate gold’s next direction
- Download the free DailyFX Gold Forecast here[1] for comprehensive insight from our analysts on the gold market
Spot gold rose to $1,302.13 as of Friday’s close, a mere 0.32 percent gain on the week as prices remain anchored around the current level. A weak US Dollar[2] helped boost gold prices higher early in the week, but traders shied away from the precious metal after muted CPI data hurt demand for the asset which generates appeal for its inflation-hedging properties.
Although XAUUSD price action has recently been largely dominated by technical indicators, that could quickly change as fundamental forces impacting gold come into focus next week. With the Fed’s latest stance on monetary policy and the market’s subsequent reaction to its announcement likely taking the spotlight, commodity traders will closely watch gold for a breakout – or breakdown – that looms.
SPOT GOLD PRICE CHART: DAILY TIME FRAME (AUGUST 09, 2018 TO MARCH 15, 2019)
The chart above shows how the price of gold[3] has coiled between its longer-term uptrend and shorter-term downtrend. At the same time, XAUUSD has fallen below its 0.786 Fibonacci retracement line drawn from the low last August to February’s high. This line rests slightly above the $1,300 price level where prices have previously
