Gold Price Forecast: XAU/USD’s path of least resistance is down as dollar stays bid
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 remains pressured, as the dollar remains favored.
- US-China escalation could save the day for XAU bulls.
- Technical set up remains in favor of the bears.
Gold (XAU/USD) remained under pressure amid US holiday-led light trading and settled Monday around $1929, having formed lower highs for the fourth straight session. Gold held onto its recent trading range, with the downside bias intact amid a broadly firmer US dollar. The uptick in the European stocks added to the weight on the safe-haven gold. Investors shrugged-off last week’s correction in the US stocks and ongoing US-China tensions. The Sino-American tech war escalated on Monday following a report that the US is considering imposing export controls on China’s state-owned Semiconductor Manufacturing International Corporation (SMIC).
On early Tuesday, the greenback trades on the front foot amid a bearish view on the euro, in light of dovish ECB expectations. Meanwhile, the sell-off in the pound due to growing no-deal Brexit fears also helps keep the buoyant tone intact around the dollar. Therefore, gold is likely to remain less preferred, as the US traders return after a long weekend. However, any escalation on the US-China front could offer temporary respite to the XAU bulls. According to the latest NY Times report, the US is considering a ban on cotton from China’s Xinjiang province.
Gold: Hourly chart
Following the downside consolidation overnight, gold broke the range to the downside, confirming a symmetrical triangle breakdown on the hourly sticks. The price closed below the rising trendline (pattern) support at $1927.42.
The move lower exposes the pattern target at $1895. Ahead of that level, the bulls could defend last Friday’s low of $1916.42. A break below which will put a $1900 mark to test. The 14-day Relative Strength Index (RSI) points south in the bearish territory, backing the case for additional declines.
Alternatively, the recovery attempts could meet the robust upside barrier around $1930, the confluence of the bearish 21-hourly Simple Moving Average (HMA), pattern resistance and horizontal 50-HMA.
A sustained break above the latter could fuel a rally towards the next hurdle of the downward-sloping 100-HMA at $1940. Acceptance above the horizontal 200-HMA at $1949.29 is critical to recall the buyers.
- Gold remains pressured, as the dollar remains favored.
- US-China escalation could save the day for XAU bulls.
- Technical set up remains in favor of the bears.
Gold (XAU/USD) remained under pressure amid US holiday-led light trading and settled Monday around $1929, having formed lower highs for the fourth straight session. Gold held onto its recent trading range, with the downside bias intact amid a broadly firmer US dollar. The uptick in the European stocks added to the weight on the safe-haven gold. Investors shrugged-off last week’s correction in the US stocks and ongoing US-China tensions. The Sino-American tech war escalated on Monday following a report that the US is considering imposing export controls on China’s state-owned Semiconductor Manufacturing International Corporation (SMIC).
On early Tuesday, the greenback trades on the front foot amid a bearish view on the euro, in light of dovish ECB expectations. Meanwhile, the sell-off in the pound due to growing no-deal Brexit fears also helps keep the buoyant tone intact around the dollar. Therefore, gold is likely to remain less preferred, as the US traders return after a long weekend. However, any escalation on the US-China front could offer temporary respite to the XAU bulls. According to the latest NY Times report, the US is considering a ban on cotton from China’s Xinjiang province.
Gold: Hourly chart
Following the downside consolidation overnight, gold broke the range to the downside, confirming a symmetrical triangle breakdown on the hourly sticks. The price closed below the rising trendline (pattern) support at $1927.42.
The move lower exposes the pattern target at $1895. Ahead of that level, the bulls could defend last Friday’s low of $1916.42. A break below which will put a $1900 mark to test. The 14-day Relative Strength Index (RSI) points south in the bearish territory, backing the case for additional declines.
Alternatively, the recovery attempts could meet the robust upside barrier around $1930, the confluence of the bearish 21-hourly Simple Moving Average (HMA), pattern resistance and horizontal 50-HMA.
A sustained break above the latter could fuel a rally towards the next hurdle of the downward-sloping 100-HMA at $1940. Acceptance above the horizontal 200-HMA at $1949.29 is critical to recall the buyers.
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.