Gold Price Forecast: XAUUSD to push higher on risk flows

Gold capitalized on risk flows and the broad-based US Dollar weakness last week and gained over 5%. In the absence of high-impact macroeconomic data releases this week, the risk perception is likely to continue to impact the US Dollar's valuation and Gold price's action. 

Risk flows are likely to continue to weigh on US Dollar

“October Industrial Production and Retail Sales figures from China will be released on Tuesday. Investors, however, are likely to ignore these data and stay focused on developments surrounding the Covid restrictions. In case China continues to ease its rules, Gold price should stretch higher on improving demand outlook.”

“On Wednesday, the US Census Bureau will publish the October Retail Sales data. The Federal Reserve Bank of Philadelphia’s Manufacturing Survey and the US Department of Labor’s weekly Initial Jobless Claims data will be the last data of the week from the US on Thursday.

Since the above-mentioned data releases don’t have the potential to move the markets in a significant way, participants will keep a close eye on Fedspeak and the overall risk perception.”

“In case global equity indexes preserve the bullish momentum, XAUUSD could capitalize on the broad US Dollar weakness.”