Gold Price Forecast: XAU/USD hovers around $2,030 extending its consolidative phase

XAU/USD Current price: $2,030.69

• Stocks struggle to extend gains after disappointing United States macroeconomic data.
• According to CB, United States Consumer Confidence fell for the first time in four months.
• XAU/USD gains downward traction in the near term, but trades within well-familiar levels.

Spot Gold holds on to modest gains mid-US afternoon, with XAU/USD trading around $2,030 a troy ounce. The bright metal aroused no interest among market players on Tuesday, as the pair has fluctuated in the $5.00 range ever since the Asian opening.

The Greenback remained on the back foot for most of the day, finding short-lived demand ahead of Wall Street’s opening and following United States (US) macroeconomic figures. On the one hand, the country published January Durable Goods Orders, which fell 6.1% in the month, much worse than the 4.5% decline anticipated by market players. On the other hand, the Conference Board (CB) Consumer Confidence contracted to 106.7 in February from a downwardly revised 110.9 in January, declining for the first time in four months.

Also, and according to the official report,  the Present Situation Index, which reflects consumers’ current perception of the business and labor market environment, fell to 147.2 from 154.9, while the  Expectations Index slipped below the pivotal 80 threshold to 79.8.  

The data disappointment weighed on stocks. The Dow Jones Industrial Average sunk, while the S&P500 struggles around its opening level, battling to turn green. At the same time, the 10-year Treasury note yield remains stable around the 4.30% figure. Overall, market participants extend the cautious wait-and-see stance ahead of inflation-related data to be released later in the week.

XAU/USD short-term technical outlook

The XAU/USD pair is little changed for a second consecutive day but retains the neutral-to-bullish stance. In the daily chart, the bright metal keeps developing above a flat 20 Simple Moving Average (SMA), currently at $2.025, in line with the absence of directional strength. However, the 100 SMA keeps heading north well below the current level, skewing the scale to the bulls’ side. Finally, technical indicators keep consolidating around their midlines, failing to provide fresh directional clues.

The technical landscape for XAU/USD in the 4-hour chart indicates easing buying interest. Gold remains above all its moving averages, which lack directional strength, but technical indicators are turning south, with the Relative Strength Index (RSI) indicator sitting above the midline but heading sharply lower, anticipating a potential bearish extension, particularly on a break below the $2,027 support area.

 Support levels: 2,027.00 2,019.60 2,011.40

Resistance levels: 2,041.40 2,056.10 2,065.60