• The gold price oscillates in a narrow range just above a one-month low and 50-day SMA support.
  • Bets for additional rate hikes by the Federal Reserve act as a headwind for the yellow metal.
  • A stronger US Dollar contributes to capping the XAU/USD, though recession fears limit losses.

Gold price extends its consolidative price move through the early European session on Monday and is currently placed around the $1,865 region. The XAU/USD manages to hold above the 50-day Simple Moving Average (SMA) support, though remains well within the striking distance of over a one-month low touched on Friday.

Hawkish Federal Reserve acts as a headwind for Gold price

The prospects for further policy tightening by the Federal Reserve (Fed) continue to underpin the US Dollar and act as a headwind for the non-yielding Gold price. In fact, a slew of Federal Open Market Committee (FOMC) policymakers, including Fed ChairĀ Jerome Powell, last week stressed the need for additional interest rate hikes to fully gain control of inflation.

Recession fears lend support to safe-haven XAU/USD

This, in turn, assists the USD to stand tall near a one-month high, which is seen as another factor that contributes to capping the upside for the US Dollar-denominated Gold price. That said, the prevalent risk-off environment – amid looming recession risks – lends some support to the safe-haven precious metal and helps limit the downside, at least for the time being.

The focus remains on consumer inflation figures from the United States

Apart from this, the risk of higher inflation print for January lends support to the Gold price, which is considered a hedge against rising inflation. Hence, the market focus remains glued to the crucial CPI report from theĀ United StatesĀ (US), due for release on Tuesday. The data could influence the Fed’s rate-hike path and determine the near-term trajectory for the XAU/USD.

Gold price technical outlook

From a technical perspective, a sustained break and acceptance below the 50-day SMA, currently around the $1,856 region, will be seen as a fresh trigger for bearish traders. The gold price might then accelerate the fall towards The XAU/USD could then accelerate the fall towards the next relevant support near the $1,830 area en route to the $1,818-$1,817 zone and the $1,800 round figure.

On the flip side, any subsequent move up is likely to confront stiff resistance near the $1,875 region. This is followed by the $1,900 round-figure mark. The latter should act as a pivotal point, above which a bout of a short-covering could lift theĀ Gold priceĀ to the $1,925-$1,930 congestion zone.

Key levels to watch


Today last price 1864.29
Today Daily Change -0.04
Today’s Daily Change % -0.00
Today daily open 1864.33
Daily SMA20 1909.06
Daily SMA50 1855.63
Daily SMA100 1776.55
Daily SMA200 1775.81
Previous Daily High 1872.33
Previous Daily Low 1852.84
Previous Weekly High 1890.27
Previous Weekly Low 1852.84
Previous Monthly High 1949.27
Previous Monthly Low 1823.76
Daily Fibonacci 38.2% 1864.88
Daily Fibonacci 61.8% 1860.29
Daily Pivot Point S1 1854
Daily Pivot Point S2 1843.68
Daily Pivot Point S3 1834.51
Daily Pivot Point R1 1873.49
Daily Pivot Point R2 1882.66
Daily Pivot Point R3 1892.98


Please enter your comment!
Please enter your name here