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Gold Price Forecast: XAU/USD Approaches $1,930 Following Strong US GDP

  • Gold price falls more than 0.60% due to profit taking and upbeat US economic data.
  • US Gross Domestic Product for the fourth quarter topped estimates, while jobless claims fell.
  • Durable goods orders rose while new orders fell.

the price of gold It pulls back after hitting a nine-month high of $1,949.16 and falls below $1,940, following the release of the preliminary reading of United States (US) Gross Domestic Product (GDP), among other data. Thus, the XAU/USD is trading at $1933.40, losing 0.49% on the day.

US Fourth Quarter Gross Domestic Product topped estimates

US stock futures rose after the fourth quarter GDP release, while gold extended its losses. The US economy grew at a solid 2.9% quarter-on-quarter, beating estimates of 2.6%, while for the third quarter it rose 3.2%, according to data released by the US Department of Commerce. Meanwhile, for the full year of 2022, the US economy expanded 2.1%, down from the 5.9% recorded in 2021. Inform noted that consumer spending was the main driver of economic growth at the start of the fourth quarter. Spending remains supported by the strength of the labor market and excess savings.

US jobless claims down and durable goods orders up

At the same time, the US Department of Labor reported that initial claims for unemployment benefits for the week ending January 21 fell 6,000 to a seasonally adjusted 186,000, below estimates of 205,000. In other data, durable goods orders rebounded from a -2.1% contraction in November to 5.6% in December, US Commerce Department data showed. However, core new orders contracted a -0.1% MoM, in line with consensus, as the US economy feels the pain of 425 basis points (bps) of tightening by the US Federal Reserve (Fed).

Gold traders brace for Fed inflation gauge on Friday

On Friday, the US economic agenda will include the US Federal Reserve’s preferred inflation indicator, Basic Personal Consumption Expenditure (PCE), with an estimated monthly reading of 0.3%, while the annual is expected at 4.4%. The main data for the PCE is expected to be 0.1% monthly and 5.5% year-on-year.

Gold Technical Analysis

The XAU/USD daily chart remains biased to the upside, although an ongoing correction could push prices towards the psychological $1,900 level or the January 18 daily low of $1,896.74. Below that support, the 20-day EMA lies at $1.89.44, which, once broken, could send XAU/USD towards the January 11 pivot low of 1,867.22. $. As an alternate scenario, if XAU/USD recovers to $1,950, a move towards the psychological $2,000 level is in sight.


Last price today 1933.51
daily change today -13.22
today’s daily variation -0.68
today’s daily opening 1946.73
daily SMA20 1885.23
daily SMA50 1822.32
daily SMA100 1750.98
daily SMA200 1775.61
previous daily high 1948.17
previous daily low 1919.91
Previous Weekly High 1937.57
previous weekly low 1896.63
Previous Monthly High 1833.38
Previous monthly minimum 1765.89
Fibonacci daily 38.2 1937.37
Fibonacci 61.8% daily 1930.71
Daily Pivot Point S1 1928.37
Daily Pivot Point S2 1910.01
Daily Pivot Point S3 1900.11
Daily Pivot Point R1 1956.63
Daily Pivot Point R2 1966.53
Daily Pivot Point R3 1984.89

Source: Fx Street

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