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Gold Price Forecast: XAU/USD falls to two-week lows and remains under pressure

  • Gold under pressure on rising dollar and sovereign bond yields.
  • XAU/USD at a two-week low and with a very short-term negative bias.
  • The Federal Reserve minutes are coming.

The Prayed is falling for the third session in a row and continues to lose ground after being rejected above $1,800. The bearish bias further intensified after losing $1780 and is now testing levels below $1770.

The declines on Wednesday are behind a stronger dollar and also a rise in sovereign bond yields. UK inflation data triggered a drop in bond values ​​on both sides of the Atlantic. The US retail sales report gave a mixed view. The focus now turns to what will be the minutes of the last meeting of the Federal Reserve, to be published at 18:00 GMT.

The Dollar Index rises 0.22% and approaches 107.00. While stocks on Wall Street are trading negative with the Dow Jones losing 0.52% and the S&P 500 losing 0.67%, giving the dollar more strength.

The metal yellow bottomed on Wednesday at $1764, where it coincides with the 20-day moving average. It is the first support to consider. Below it will then follow $1755 and $1745.

The very short-term bias is to the downside, although XAUUSD faces a relevant support area up to $1760. A return above $1780 could alleviate the current bearish pressure. To enable a resumption of the rally, a confirmation above $1,800 is required.

Technical levels


Last Price Today 1769.33
Today’s Daily Change -6.45
Today’s Daily Change % -0.36
Today’s Daily Opening 1775.78
20 Daily SMA 1761.21
50 Daily SMA 1780.38
100 Daily SMA 1834.45
200 Daily SMA 1841.67
Previous Daily High 1783.18
Previous Daily Minimum 1771.57
Previous Maximum Weekly 1807.93
Previous Weekly Minimum 1770.9
Monthly Prior Maximum 1814.37
Previous Monthly Minimum 1680.91
Daily Fibonacci 38.2% 1776.01
Daily Fibonacci 61.8% 1778.74
Daily Pivot Point S1 1770.51
Daily Pivot Point S2 1765.23
Daily Pivot Point S3 1758.9
Daily Pivot Point R1 1782.12
Daily Pivot Point R2 1788.45
Daily Pivot Point R3 1793.73

Source: Fx Street

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