XAUUSD : Comment on USD and Gold exchange rate pairs

Investors will be waiting for economic data with a big impact on the US next week: core PCE data - the Fed's favorite inflation measure.

Core PCE is forecast to increase 0.4% in January, pushing the annual figure down from 2.9% to 2.7%. However, traders should not be surprised if these numbers suddenly increase considering previous CPI and PPI figures.

Persistent price pressures in the economy, coupled with solid employment and hot wage growth, could force the Fed to delay easing to the second half of the year. Such a scenario could push interest rate expectations in a more hawkish direction compared to the current situation.

Higher interest rates for longer could push up US government bond yields in the coming weeks - an outcome that could benefit the USD. In this case, the EUR/USD and GBP/USD pairs will have difficulty trending up in the short term. Gold prices may also come under pressure.

Gold rose slightly on Thursday but hit a hurdle at around $2,030. A rally above this level could push the price towards $2,065.

On the other hand, if sentiment reverses and prices start to decline, support appears at $2,005, near the 100-day SMA. After that, the price target will move down to $1,990, followed by $1,995.

Trade active:

Sell 2029 - 2031

TP1 : 2025
TP2 : 2020

SL 2037

Buy 2019 - 2020

TP1 : 2025
TP2 : 2030

SL 2013

Comment:

buy more 2015 - 2017

TP 2020
TP2 : 2025

SL 2010

Comment:

buy 2019 - running 40 pips
Buy limit 2016 - running 70 pips

Comment:

buy 2019 - hit 90 pips
Buy limit 2016 - hit 120 pips

Comment:

Sell 2028 - 2031

TP1 : 2025
TP2 : 2020

SL 2037

Comment:

sell 2029 - running 30 pips

Comment:

💲Entry 2 Sell Limit : 2033 - 2035
💵TP1 : 2030
💵TP2 : 2025
🔴 SL : 2040

Trade active:

sell 2029 - hit tp 40 pips