Gold Price Forecast: XAU/USD breaks below $1700 and targets 2022 and 2021 lows

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  • Gold hits eight-week lows and approaches 2022 floor at $1,680.
  • The metal remains under pressure amid cautious weather and rising Treasury bond yields.
  • US: Initial jobless claims fall to lowest in weeks, ISM manufacturing report is coming.

Gold broke below $1,700 and fell to $1,694, hitting the lowest level since July 21. The price remains close to $1700, with a bearish tone, and I start to look closely at the 2022 floor at $1680.

Should it break below $1,680, just below is the $1,675 zone, which contains the 2021 lows. A recovery above $1,710 would ease downward pressures.

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After the US economic report of requests for unemployment benefits, the dollar regained momentum and Treasury bond yields reached new highs, all of which was negative for the yellow metal. If these conditions persist, gold will continue to be under pressure. In minutes the manufacturing ISM report for August will be published.

The dollar it is rising on all fronts. DXY is up 0.60% and trading at 109.35, very close to the highest in decades. On Wall Street, stocks are down 0.75% on average.

Technical levels

XAU/USD

Panorama
Last Price Today 1698.07
Today’s Daily Change -12.99
Today’s Daily Change % -0.76
Today’s Daily Opening 1711.06
Trends
20 Daily SMA 1763.12
50 Daily SMA 1759.07
100 Daily SMA 1813.2
200 Daily SMA 1836.04
levels
Previous Daily High 1726.62
Previous Daily Minimum 1709.68
Previous Maximum Weekly 1765.51
Previous Weekly Minimum 1727.87
Monthly Prior Maximum 1807.93
Previous Monthly Minimum 1709.68
Daily Fibonacci 38.2% 1716.15
Daily Fibonacci 61.8% 1720.15
Daily Pivot Point S1 1704.95
Daily Pivot Point S2 1698.85
Daily Pivot Point S3 1688.01
Daily Pivot Point R1 1721.89
Daily Pivot Point R2 1732.73
Daily Pivot Point R3 1738.83

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Source: Fx Street

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