Gold Price Forecast: XAU/USD awaits acceptance below $1750 to resume the downside
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- Gold price snaps three-day uptrend, eyes deeper losses.
- China worries, inflation fears revive the dollar’s safe-haven demand.
- Gold’s daily technical setup remains in favor of bearish traders.
Gold price extended its recovery from seven-week troughs into the third straight day on Monday, starting out a fresh week on the right note. Gold price benefited from the renewed concerns over the debt-ridden China Evergrande property giant and fresh US-Sino trade jitters. US Trade Representative Katherine Tai said that the US will restart the tariff exclusion process on Chinese goods, adding that tariffs will stay in place for now.
The risk-off flows outweighed the rebound in the US Treasury yields, underpinning gold’s upside. Treasury yields jumped on expectations that the rising inflation could prompt the Fed to act sooner than expected on monetary policy tightening. Meanwhile, the US dollar slipped across the board amid repositioning heading towards the critical US Nonfarm Payrolls release. Further, uncertainty looming over the US debt ceiling and the infrastructure vote weighed down on the buck, helping gold price extend its recovery momentum.
This Tuesday, gold is feeling the pull of gravity amid the rebound in the greenback vs. its main rivals while the Treasury yields hold onto the recent gains. The risk sentiment improved slightly but investors continue to remain cautious amid default by another Chinese property developer Fantasia Limited. Meanwhile, rising inflation risks amid the ongoing surge in commodity prices raise global economic growth concerns, weighing on the market mood.
Gold price looks vulnerable going forward, with all eyes now on the US ISM Services PMI release for fresh trading insights. In the meantime, the US dollar price action and the risk on/ off sentiment will continue to influence gold price.
Gold Price Chart - Technical outlook
Gold: Daily chart
As explained here, gold price tested the bearish 21-Daily Moving Average (DMA) at 1.1771 and now turns south towards the $1750 psychological level.
The Relative Strength Index (RSI) is pointing lower while sitting just beneath the midline, adding credence to the latest leg down.
The September 27 highs of $1745 remain on the sellers’ radars if the $1750 barrier gives way. The downside will then open up towards the rising trendline support of $1726.
If the bulls manage to find acceptance above that short-term critical 21-DMA, then a fresh advance towards the downward-sloping 50-DMA at $1784 would be inevitable. Gold bulls will then look to recapture the $1800 round number.
- Gold price snaps three-day uptrend, eyes deeper losses.
- China worries, inflation fears revive the dollar’s safe-haven demand.
- Gold’s daily technical setup remains in favor of bearish traders.
Gold price extended its recovery from seven-week troughs into the third straight day on Monday, starting out a fresh week on the right note. Gold price benefited from the renewed concerns over the debt-ridden China Evergrande property giant and fresh US-Sino trade jitters. US Trade Representative Katherine Tai said that the US will restart the tariff exclusion process on Chinese goods, adding that tariffs will stay in place for now.
The risk-off flows outweighed the rebound in the US Treasury yields, underpinning gold’s upside. Treasury yields jumped on expectations that the rising inflation could prompt the Fed to act sooner than expected on monetary policy tightening. Meanwhile, the US dollar slipped across the board amid repositioning heading towards the critical US Nonfarm Payrolls release. Further, uncertainty looming over the US debt ceiling and the infrastructure vote weighed down on the buck, helping gold price extend its recovery momentum.
This Tuesday, gold is feeling the pull of gravity amid the rebound in the greenback vs. its main rivals while the Treasury yields hold onto the recent gains. The risk sentiment improved slightly but investors continue to remain cautious amid default by another Chinese property developer Fantasia Limited. Meanwhile, rising inflation risks amid the ongoing surge in commodity prices raise global economic growth concerns, weighing on the market mood.
Gold price looks vulnerable going forward, with all eyes now on the US ISM Services PMI release for fresh trading insights. In the meantime, the US dollar price action and the risk on/ off sentiment will continue to influence gold price.
Gold Price Chart - Technical outlook
Gold: Daily chart
As explained here, gold price tested the bearish 21-Daily Moving Average (DMA) at 1.1771 and now turns south towards the $1750 psychological level.
The Relative Strength Index (RSI) is pointing lower while sitting just beneath the midline, adding credence to the latest leg down.
The September 27 highs of $1745 remain on the sellers’ radars if the $1750 barrier gives way. The downside will then open up towards the rising trendline support of $1726.
If the bulls manage to find acceptance above that short-term critical 21-DMA, then a fresh advance towards the downward-sloping 50-DMA at $1784 would be inevitable. Gold bulls will then look to recapture the $1800 round number.
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.