Gold Price Forecast: XAU/USD skids below $1,980 as upbeat US PMI figures strengthen hawkish Fed bets Gold XAUUSD Fed PMI DollarIndex
refore, more downside is anticipated further. Bearish bets for Gold price soared after S&P Global reported upbeat preliminary United States PMI figures on Friday.jumped to 49.3 vs. the consensus of 47.0 and the former release of 47.3. While Services PMI accelerated to 53.8 against the estimates of 50.5 and the prior release of 50.6.
A vertical jump in the overall economic activities indicates that overall demand is robust and the road ahead for pushing US inflation lower would be full of challenges for the Federal Reserve . Last week, Fed chairhinted that few rates are in pipeline now to avoid a banking crisis. And now solid PMI numbers could force the Fed to continue to hike rates further.
Meanwhile, Minneapolis Fed president Neel Kashkari cited on Sunday, “Recent stress in the banking sector and the possibility of a follow-on credit crunch brings the US closer to recession. It definitely brings us closer." It would be a tough call from the Fed to bring more interest is juggling in a narrow range below 103.20 after a solid recovery. The USD Index is looking to add gains further despite potential fears of further banking turmoil.
inspired by the Fed policy. The impact of dovish interest rate guidance by the Fed was witnessed in US Treasury yields. The 10-year US Treasury yields dropped to 3.37%.Gold price has shown a break of higher highs and higher lows structure below $1,982.70 after forming a Double Top chart pattern on an hourly scale. The chart pattern indicates a re-test of prior highs with less buying interest, which allows aggressive selling interest to penetrate.
Meanwhile, the Relative Strength Index is defending the 40.00 cushion. A break below the same would drag Gold price further as a bearish momentum will get triggered.
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