Title : Gold Price Forecast: XAU/USD extends slide to fresh weekly low near $1,770
Aug 15 2022 08:00 AM ET
Gold started the new week under strong downward pressure and fell to a new weekly low of $1,773. At the time of writing, the XAU/USD was trading at $1,775, down 1.5% on a daily basis.
The dollar's recovery is gaining ground.
Disappointing macroeconomic data released in China reminded investors that a slowdown in the world's second largest economy could weigh significantly on the demand outlook for the yellow metal.
In addition, escalating geopolitical tensions, with U.S. lawmakers visiting Taiwan and China's continued military maneuvers around the island, forced investors to seek shelter earlier in the week. The dollar gained strength amid risk aversion and the U.S. dollar index (DXY) managed to build on Friday's recovery gains. At the time of writing, the DXY was up 0.6% on the day to 106.29.
Looking ahead, the Federal Reserve Bank of New York's Empire State manufacturing survey will headline the U.S. economic agenda. The NAHB housing market index for August will also be scrutinized for further momentum.
At the time of writing, U.S. stock index futures were down between 0.3% and 0.5%. Unless this data allows risk flows to return to the markets, gold may struggle to rally in the second half of the day.