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Gold Price Forecast: XAU/USD falls after hitting resistance at $1680 zone

  • XAU/USD makes daily lows below $1,670.
  • The trend remains down, although for now the price remains between $1,680 and $1,660.
  • A drop below $1,650 could spark an acceleration to the downside.

Gold is falling on Tuesday although it remains in the range of recent days, in the area of ​​lows in years. XAUUSD ran into resistance again at the $1680 area and after failing to break above it started to pull back. It recently hit a daily low of $1,665.

The pThe price remains strong this week without being able to assert itself above $1,680 and on the downside, finding support above $1,660. The dominant trend remains clearly bearish. Losing $1,660 would expose the support at $1,650 and below it could give an acceleration to the downside.

The rise in sovereign bond yields remains a negative factor for the yellow metal. The US 10-year bond is at ten-year highs above 3.50% and the 2-year is very close to 4% at highs since 2007. The issue of bonds occurs ahead of the start of the FOMC meeting, which on Wednesday will announce the monetary policy decision, which is expected to be a 75 basis point rise in the interest rate.

Both equity markets and the dollar are flat on Tuesday. The market seems to be entering a waiting mode for the big event on Wednesday.

Technical levels

XAU/USD

Panorama
Last Price Today 1666.7
Today’s Daily Change -9.18
Today’s Daily Change % -0.55
Today’s Daily Opening 1675.88
Trends
20 Daily SMA 1713.76
50 Daily SMA 1736.09
100 Daily SMA 1783.63
200 Daily SMA 1830.79
levels
Previous Daily High 1680.02
Previous Daily Minimum 1659.71
Previous Maximum Weekly 1735.17
Previous Weekly Minimum 1654.17
Monthly Prior Maximum 1807.93
Previous Monthly Minimum 1709.68
Daily Fibonacci 38.2% 1672.26
Daily Fibonacci 61.8% 1667.47
Daily Pivot Point S1 1663.72
Daily Pivot Point S2 1651.56
Daily Pivot Point S3 1643.41
Daily Pivot Point R1 1684.03
Daily Pivot Point R2 1692.18
Daily Pivot Point R3 1704.34

Source: Fx Street

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