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Gold Price Forecast: XAU/USD recovers above $1700, still in risk zone

  • Gold tries to recover after Tuesday’s crash.
  • Dollar falls modestly, equity markets recover.
  • Another US inflation data is coming: the Producer Price Index.

Gold fell to $1697 and then bounced back up to the $1705 area, where it is trading, recovering. Stability in financial markets after Tuesday’s stock and bond plunge helps the yellow metal regain ground, but doubts prevail.

Calm returns, will it last?

Tuesday’s US August inflation data sparked a sharp fall in the stock markets and a rally in the dollar. Analysts began to see a 100 basis point hike more possible when the FOMC meets next week. The wholesale inflation data will be published on Wednesday.

The above generated a strong reversal in gold, which went from testing levels above $1,730 to falling to $1,700. In the Asian session on Wednesday, XAUUSD matched Tuesday’s low of $1,697 before bouncing.

In the previous American session the Prayed is trading at intraday highs at $1705, attempting to extend the rally. It has been stable for hours, but in the background downward pressures predominate. The wholesale inflation data can have a great impact.

A confirmation below $1699 would pave the way for fresh weekly lows. and a test at $1690. Below that follows the support at $1680 and then comes the long-term support zone at $1675.

In the opposite direction now $1711 is the first strong resistance, followed later by $1720. The key level to break is $1730/35, where a confirmation above would point to further gains.

Technical levels

XAU/USD

Panorama
Last Price Today 1704.98
Today’s Daily Change 2.80
Today’s Daily Change % 0.16
Today’s Daily Opening 1702.18
Trends
20 Daily SMA 1728.35
50 Daily SMA 1740.95
100 Daily SMA 1791.91
200 Daily SMA 1832.87
levels
Previous Daily High 1731.87
Previous Daily Minimum 1697.09
Previous Maximum Weekly 1729.57
Previous Weekly Minimum 1691.47
Monthly Prior Maximum 1807.93
Previous Monthly Minimum 1709.68
Daily Fibonacci 38.2% 1710.38
Daily Fibonacci 61.8% 1718.58
Daily Pivot Point S1 1688.89
Daily Pivot Point S2 1675.6
Daily Pivot Point S3 1654.11
Daily Pivot Point R1 1723.67
Daily Pivot Point R2 1745.16
Daily Pivot Point R3 1758.45

Source: Fx Street

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