Gold price prediction: XAU/USD expects to reach $1,770 before the combined US ISM data

The optimism shown last week in the Asian session for Gold Price (XAU/USD) is anticipated to continue as escalating recession worries in the US economy have fueled demand for the precious metal. The yellow metal moved sideways after setting a new three-week high at $1,768, but despite intense pricing pressures in the US economy, further gains are still justified.

The US Personal Consumption Expenditure (PCE) for Friday came in at 6.8%, above estimates and the previous release of 6.7% and 6.3%, respectively. Well, a 50 basis point increase in the Federal Reserve's (Fed) favored inflation gauge shows no symptoms of a price pressures weariness. However, anxiety over the recession has suddenly increased.

Investors will be watching the US Institute of Supply Management (ISM) data release in today's session. The ISM Manufacturing PMI is probably going to drop from its previous reading of 53 to 52. A decline in the Manufacturing PMI suggests that the Fed's aggressive increase in interest rates has begun to show its effects, but inflation has not yet been fully contained, which is a major cause for concern. Although the economic data is now higher at 52 compared to the previous release of 49.2, the New Orders Index still warrants a respectable improvement. This demonstrates that despite skyrocketing prices, consumer spending is rising quickly.