Gold Price Forecast: XAU/USD struggles to extend above $1,820 decisively ahead of US ISM data
- Gold price is facing pressure in surpassing the immediate hurdle of $1,823.00.
- Less trading activity is expected ahead amid the festive mood in the global market.
- Going forward, investors will keep an eye on US ISM Manufacturing PMI data.
Gold price (XAU/USD) is struggling to extend its upside journey above the immediate resistance of $1,823.00. The precious metal is expected to remain lackluster amid the festive mood for New Year celebrations, therefore, trading activity will remain quiet in various nations.
The US Dollar Index (DXY) settled the last trading session on a weak note after delivering a south-side break of the consolidation formed in a 103.47-104.57 range. The USD Index dropped to near the round-level support of 103.00. Meanwhile, S&P500 witnessed some sell-off on Friday as investors turned cautious for the CY2023 outlook, portraying ambiguity in the risk impulse.
Going forward, investors will focus on the United States ISM Manufacturing PMI data (Dec), which will release on Wednesday. As per the consensus, the ISM Manufacturing data will escalate to 49.6 vs. the former release of 49.0. Apart from that, investors will keep New Orders Index on the radar, which might climb to 48.1 against the prior release of 47.2. A decent improvement in demand anticipants may also support the US Dollar Index.
Gold technical analysis
Gold price is auctioning in an Ascending Triangle chart pattern on a four-hour scale. The horizontal resistance of the aforementioned chart pattern is placed from December 13 high at $1,824.55 while the upward-sloping trendline is plotted from December 16 low at $1,774.36.
Advancing 20-and 50-period Exponential Moving Averages (EMAs) at $1,814.77 and $1,807.43 respectively add to the upside filters.
Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00 from the 40.00-60.00 range, which indicates more upside ahead.
