Gold Price Prediction: XAU/USD recovers from $1,660, but remains in the woods; US GDP buzz

As investors await the publication of US economic statistics, the gold market is demonstrating erratic behavior. Despite a climate of heightened hawkishness, the US GDP is anticipated to see positive growth. Increasing core CPI has not resulted in a decrease in demand for durable goods.

Gold price (XAU/USD) is generally bidding within a restricted region as market participants await fresh motivation for a unilateral move. The precious metal had moderate selling pressure around $1,670.00, but has rebounded from $1,660.00 and returned to safety. The auction profile is plotted between $1,660.00 and $1,671.20.

In the meantime, the US dollar index (DXY) has detected a slight buying activity around 109.60 but remains rangebound. After testing waters below the psychological support of 4%, rates on 10-year US Treasuries have rallied slightly. Ahead of the US Gross Domestic Product (GDP) and US Durable Goods Orders figures, investors have moved to the sidelines, creating a tense market environment.

In spite of the Federal Reserve (Fed) increasing interest rates, the US GDP is predicted to post a growth rate of 2.4% in the third quarter of CY2022, as opposed to the previously stated de-growth rate of 0.6%.

In addition, the US Durable Goods Orders are anticipated to outperform with an increase of 0.6% versus a decline of 0.2%. It is important to note that core inflation data has been on the rise over the previous few months, while a rising demand for durable goods indicates that household demand is robust.

The gold price is oscillating within a Symmetrical triangle, which indicates a drastic reduction in volatility. An eruption of the volatility contraction pattern will cause wider ticks and substantial volume. At $1,684.05. horizontal resistance is set from the 11 October peak.

The counter is supported by the 20-period Exponential Moving Average (EMA) at $1,633.16.

The Relative Strength Index (14) has retreated from the bullish range of 60.00-80.00, but the bullish bias remains strong.

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