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Gold Price Forecast: XAUUSD corrects towards $1750 on dollar recovery

  • The dollar rebounds after sharp decline last week.
  • XAUUSD loses ground, pulling away from highs in almost three months.
  • Next support is seen at the $1745 area.

Gold is falling after a strong rally last week, as the dollar bounces across the board and Treasury yields rise. XAUUSD is at $1,753, the lowest level since the day.

correcting downwards

Despite falling less than $10, it is the worst day for gold in almost two weeks, in which it accumulated a rise of more than $100. The peak reached it at 1772$, the highest since August 17. Should the declines extend, the next support appears at $1,745, followed by $1,715. Immediate resistance can be seen at $1766.

The decline of the yellow metal occurs before a general rise in the dollar in the market. The greenback partially recovers from last week’s slump, produced by expectations of a less aggressive rise in interest rates by the Federal Reserve.

Treasury yields rebound contributing to Monday’s weakness in XAUUSD. This is a generalized correction to last week’s runs. The short-term trend continues to point to the weakness of the dollar and the rise in gold.

For these hours there will be no impact data from the US. On Tuesday the wholesale inflation data will come out, with the Producer Price Index which can have great influence. Wednesday will be the turn of the retail sales report.

Technical levels


Last Price Today 1754.71
Today’s Daily Change -13.12
Today’s Daily Change % -0.74
Today’s Daily Opening 1767.83
20 Daily SMA 1666.74
50 Daily SMA 1675.78
100 Daily SMA 1715.03
200 Daily SMA 1803.49
Previous Daily High 1768.17
Previous Daily Minimum 1747.36
Previous Maximum Weekly 1768.17
Previous Weekly Minimum 1664.76
Monthly Prior Maximum 1729.58
Previous Monthly Minimum 1617.35
Daily Fibonacci 38.2% 1760.22
Daily Fibonacci 61.8% 1755.31
Daily Pivot Point S1 1754.07
Daily Pivot Point S2 1740.31
Daily Pivot Point S3 1733.26
Daily Pivot Point R1 1774.88
Daily Pivot Point R2 1781.93
Daily Pivot Point R3 1795.69

Source: Fx Street

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