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Gold Price Forecast: XAU/USD returns above $1640 after hitting one-week lows

  • Gold makes new lows and then stabilizes.
  • XAU/USD with bearish bias, next support at $1635.
  • Loaded week begins, high volatility is expected.

The Prayed It started the week by extending Friday’s decline and reached as high as $1635, reaching the lowest level since October 21st. It then bounced back and is trading just above $1640, slightly negative, at the start of a busy week.

The $1,635 zone is not just the daily low but a key short-term support. A confirmation below would trigger further downside, with a possible target of the next support at $1620. On the upside, a recovery above $1,650 would relieve downward pressure. The next barrier can be seen at $1658.

The recoil of Prayed occurs before a strengthening of the dollar in the market and a rise in Treasury bond yields. DXY is up 0.40%, and is above 111.00. For its part, the 10-year Treasury bond yields 4.03%, while the two-year bond yields 4.46%.

The green ticket positively starts a week that will have the meeting of the Federal Reserve and the US employment report for Octoberamong other important events. This implies a high probability of a week with several volatile sessions for gold.

Technical levels

XAU/USD

Panorama
Last Price Today 1637.33
Today’s Daily Change -7.29
Today’s Daily Change % -0.44
Today’s Daily Opening 1644.62
Trends
20 Daily SMA 1668.12
50 Daily SMA 1685.23
100 Daily SMA 1729.75
200 Daily SMA 1809.96
levels
Previous Daily High 1667.07
Previous Daily Minimum 1638.09
Previous Maximum Weekly 1674.96
Previous Weekly Minimum 1638.09
Monthly Prior Maximum 1735.17
Previous Monthly Minimum 1614.85
Daily Fibonacci 38.2% 1649.16
Daily Fibonacci 61.8% 1656
Daily Pivot Point S1 1632.78
Daily Pivot Point S2 1620.95
Daily Pivot Point S3 1603.8
Daily Pivot Point R1 1661.76
Daily Pivot Point R2 1678.91
Daily Pivot Point R3 1690.74

Source: Fx Street

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