Gold Price Forecast: XAU/USD extends decline below $1800

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  • Gold fails to find support despite lower Treasury yields.
  • Next level of consideration appears at $1786, the low of May.
  • Silver accelerates the decline and loses more than 2% on Friday.

The Prayed remains under pressure and is falling for the fifth day in a row. Hours ago it fell below $1,800 and is trading at $1789, the lowest level since May 16.

The yellow metal is getting closer to the May low and also to $1780 which is another important support. Losing these levels could lead to an acceleration to the downside. In the opposite direction, a return above $1,805 could relieve very short-term bearish pressure. Fresh from breaking above $1,830, the XAU/USD rally could become more sustainable.

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The marked weakness of Prayed takes place despite falling sovereign bond yields. The cautious climate in the markets has led to an increase in demand for safer assets, but not gold. The 10-year Treasury bond yields 2.97% while the German benchmark yields 1.35%, both at lows since June 9.

The strength of dollar together with the decline in raw materials, weigh on the price of gold. The worsening of global growth expectations, in combination with the rate hike by the Federal Reserve will continue to be factors that limit increases.

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the pcan loses 2.70% so far on Friday and trades at $19.73, new low in two years. “Silver losses are disproportionately high compared to gold, meaning the gold/silver ratio has risen to almost 90. The last time silver was this cheap compared to gold was about two years ago. In addition to the falling gold price, silver is being further depressed by very weak base metal prices,” Commerzbank analysts explained.

Technical levels

XAU/USD

Panorama
Last Price Today 1791.7
Today’s Daily Change -15.60
Today’s Daily Change % -0.86
Today’s Daily Opening 1807.3
Trends
20 Daily SMA 1834.99
50 Daily SMA 1849.89
100 Daily SMA 1891.72
200 Daily SMA 1845.12
levels
Previous Daily High 1825.19
Previous Daily Minimum 1802.79
Previous Maximum Weekly 1847.95
Previous Weekly Minimum 1816.99
Monthly Prior Maximum 1879.26
Previous Monthly Minimum 1802.79
Daily Fibonacci 38.2% 1811.35
Daily Fibonacci 61.8% 1816.63
Daily Pivot Point S1 1798.33
Daily Pivot Point S2 1789.36
Daily Pivot Point S3 1775.93
Daily Pivot Point R1 1820.73
Daily Pivot Point R2 1834.16
Daily Pivot Point R3 1843.13

Source: Fx Street

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