Gold Price Forecast: XAU/USD finds resistance at $1785 zone, remains bullish

• The rally in gold and silver loses strength, but maintains an upward bias.
• Fed Powell’s comments reinforce lower Treasury yields.
• XAU/USD with resistance at 1780/$85, above, more rises expected.

Gold is rising on Thursday for the third day in a row. Powell’s speech gave it more momentum and it went as high as $1783, the highest in two weeks before pulling back towards $1775. Important data is coming from the US.

Powell boosts gold

In a briefing on Wednesday, the Federal Reserve Chairman, Jerome Powell, gave signs that a moderation in the size of the increases in interest rates is coming. Although this was already within the possibilities of the market, there was still a great reaction.

The ttreasury bills they went up strongly. The fall in yields weakened the dollar and sent gold higher. On Thursday there will be several economic reports among which the inflation indicator closely monitored by the Fed stands out, which is the underlying price index of personal consumption spending. A major sign of a slowdown here, it would set the stage for a minor hike and bring the end of the rate hike cycle closer.

Other economic data will also be published. Friday will be the turn of the official employment report for novemberwith market consensus pointing to an increase in non-farm payrolls of 200,000.

Rally continues although with less force

The rises that began on Wednesday have lost momentum after failing to break November highs in the $1785 area, nor to assert itself on $1780. If these levels are clearly broken, the next target is at the 200-day moving average at $1,795.

The underlying trend remains clearly bullish. A pullback below $1,760 would ease the upward pressure, leaving the yellow metal vulnerable to a further correction towards the 20-day MA at $1,745.

technical levels