Gold Price Forecast: Bulls hesitate despite a better market mood
Premium|Take advantage of 60% OFF on your first month.
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
You have reached your limit of 5 free articles for this month.
BLACK FRIDAY SALE! 60% OFF!
Grab this special offer, it's 7 months for FREE deal! And access ALL our articles and analysis.
CLAIM OFFER
XAUUSD Current price: $1,712.46
- The market mood improved at the beginning of the week, but the focus remains on potential recession.
- US indexes trade in the green but pared gains as government bond yields advance.
- XAUUSD is bearish in the near term and could accelerate its slump once below the year low.
Spot gold trades around $1,712 a troy ounce, flat for the day. The bright metal advanced to $1,723.81 earlier in the day as the greenback struggles to find buyers. A better market mood pushed the greenback lower at the beginning of the week as stocks surged, backed mainly by encouraging earnings reports and expectations that the US Federal Reserve will refrain from tightening more than anticipated.
US indexes trade in the green but pared early gains as US government bond yields ticked higher, halting the dollar’s slide. Meanwhile, markets remain concerned about signs of slowing economic growth. Recession fears and persistent inflationary pressures have kept investors on their toes since the year's second quarter, and are likely to continue pressuring high-yielding assets.
Gold Price short-term technical outlook
The daily chart for XAUUSD shows that it trades near the 2020 yearly low posted last week at $1,697.56. It also shows that attempts to regain the upside remain limited. Technical indicators stay within oversold levels, lacking directional strength while moving averages maintain their firmly bearish slopes far above the current level.
In the near term, and according to the 4-hour chart, the risk remains skewed to the downside. The pair briefly traded above a mildly bearish 20 SMA, now back below it, while the longer moving averages keep heading south far above the shorter one. Technical indicators, in the meantime, develop below their midlines, with the RSI resuming its decline.
Support levels: 1,697.60 1,685.40 1,677.00
Resistance levels: 1,714.50 1,727.20 1,736.70
View Live Chart for the XAUUSD
XAUUSD Current price: $1,712.46
- The market mood improved at the beginning of the week, but the focus remains on potential recession.
- US indexes trade in the green but pared gains as government bond yields advance.
- XAUUSD is bearish in the near term and could accelerate its slump once below the year low.
Spot gold trades around $1,712 a troy ounce, flat for the day. The bright metal advanced to $1,723.81 earlier in the day as the greenback struggles to find buyers. A better market mood pushed the greenback lower at the beginning of the week as stocks surged, backed mainly by encouraging earnings reports and expectations that the US Federal Reserve will refrain from tightening more than anticipated.
US indexes trade in the green but pared early gains as US government bond yields ticked higher, halting the dollar’s slide. Meanwhile, markets remain concerned about signs of slowing economic growth. Recession fears and persistent inflationary pressures have kept investors on their toes since the year's second quarter, and are likely to continue pressuring high-yielding assets.
Gold Price short-term technical outlook
The daily chart for XAUUSD shows that it trades near the 2020 yearly low posted last week at $1,697.56. It also shows that attempts to regain the upside remain limited. Technical indicators stay within oversold levels, lacking directional strength while moving averages maintain their firmly bearish slopes far above the current level.
In the near term, and according to the 4-hour chart, the risk remains skewed to the downside. The pair briefly traded above a mildly bearish 20 SMA, now back below it, while the longer moving averages keep heading south far above the shorter one. Technical indicators, in the meantime, develop below their midlines, with the RSI resuming its decline.
Support levels: 1,697.60 1,685.40 1,677.00
Resistance levels: 1,714.50 1,727.20 1,736.70
View Live Chart for the XAUUSD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.