Gold Price Forecast: XAU/USD retreats from one-week highs, $1,930 barrier continues to limit upside

• The price of Gold is falling from the one-week highs reached on Monday, although it lacks continuation.
• Cautious markets benefit safe-haven XAU/USD amid a modest decline in the USD.
• The rise remains limited pending this week’s decisions from central banks on interest rates.

The price of Gold (XAU/USD) continues to struggle to overcome the $1,930 resistance zone and retreats from the one-week highs reached this Monday. However, the

The US dollar remains defensively below its highest level in more than six months, reached last week, which is seen as a key factor lending some support to the price of Gold. In addition, concerns about the closing of the The US government and the worsening of the real estate crisis in China support the precious metal. In fact, the Chinese group Evergrande delayed the decision to restructure its debt. Additionally, some of the employees of the embattled developer’s wealth management unit were detained by police in southern China. This is due to China’s conservative approach to introducing further stimulus measures and tempers investor appetite for riskier assets.

Meanwhile, the Dollar remains lower, as traders seem reluctant to open aggressive positions and prefer to wait for the latest monetary policy update from the Federal Reserve (Fed). This, in turn, limits any significant appreciation movement in the price of Gold, denominated in US Dollars. The Fed is scheduled to announce the outcome of a two-day policy meeting on Wednesday and is widely anticipated to maintain the status quo. However, markets are still pricing in the possibility of a further 25 basis point (bp) hike later this year, either in November or December. Therefore, markets will continue to pay attention to the monetary policy statement.

Additionally, investors will closely monitor Fed Chair Jerome Powell’s comments at the post-meeting press conference for new clues on the future path of rate hikes. This, in turn, will play a key role in influencing the short-term price dynamics of the Dollar and provide further impetus to the price of Gold. This week, market participants will also face a series of decisions. on interest rates by other major central banks: the Swiss National Bank (SNB) and the Bank of England (BoE) on Thursday, followed by the Bank of Japan (BoJ) on Friday. Apart from this, the latest consumer inflation figures from Canada and the United Kingdom on Tuesday and Wednesday, respectively, could help produce trading opportunities around the XAU/USD.

Gold technical levels to watch