Gold Price Forecast: XAU/USD rebounds from monthly lows, still under pressure near critical $1,820

Gold Price Forecast: XAU/USD rebounds from monthly lows, still under pressure near critical $1,820

Time Stamp: February 23, 2023 11:16 AM
Source Node: 1973895

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  • US Q4 GDP revised lower, inflation indicators revised higher.
  • Jobless Claims, Chicago Fed Activity surpassed expectations.
  • Gold’s rebound fails to rise above $1,830.

Gold prices rebounded after hitting fresh monthly lows amid risk appetite and an intraday reversal of the US Dollar. XAU/USD bottomed at $1,817 following the release of US economic data, the lowest level since late December and then bounced back toward the $1,830 area.

Data released in the US came in mixed. Initial Jobless Claims dropped to 192K, the lowest level in three weeks. The second reading of Q4 GDP showed a lower annualized growth rate of 2.7% below the 2.9% of the previous estimate. Inflation indicators of the GDP report were revised higher. The Chicago Fed’s National Activity Index rose from -0.43 to 0.23, surpassing expectations.

Investors continue to digest the FOMC minutes and the new economic numbers. The Dow Jones is climbing 0.43% and the Nasdaq is rising 0.50%. US yields are modestly lower, hovering near monthly highs.

The US Dollar peaked after the release of US data while Gold bottomed at $1,817, the lowest since December 30. The yellow metal then rebounded toward $1,830 but it was unable to rise back above that key short-term level.

Following Wall Street’s opening bell the Dollar gained momentum again and pushed XAU/USD back to the downside. XAU/USD is approaching the $1,820 area, which is critical. A consolidation below would open the doors to more weakness, targeting initially $1,812.

XAU/USD daily chart

XAUUSD

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