Gold Price Forecast: XAU/USD re-attempts $1780 as US dollar slips, PCE inflation eyed

Despite a minor bid, gold price continues to trade within familiar levels amid mixed signals from the Fed on interest rate hikes and a slew of downbeat US economic data.

Gold gained traction during the European trading hours on Thursday and advanced to a daily high of $1,788 before reversing its direction in the second half of the day.

Meanwhile, the S&P 500 Index notched a new all-time high after the opening bell and made it difficult for the USD to attract investors as a safe haven.

Additionally, the US Census Bureau reported that Durable Goods Orders rose by 2.3%, or $5.7 billion, to $253.5 billion in May, falling short of the market expectation for an increase of 2.7%.

Louis Fed President James Bullard that inflation could be even stronger than expected and added that policymakers need to account for new inflation risks in the coming months.

Following Thursday’s choppy action, gold’s near-term technical outlook remains bearish with key levels remaining intact.

Earlier on Thursday, headlines concerning US President Joe Biden’s infrastructure deal and softer data at home, negated tapering fears, improved market sentiment and weighed on the gold prices.

It’s worth noting that technical pullback from 100-DMA and the month-end, as well as quarter-end, moves suggest further weakness of the yellow metal.

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