Gold Price Forecast: XAUUSD close to confirming a long-term double top
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $479.76 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER
XAUUSD Current price: $1,717.15
- Tepid US employment-related data and month-end flows weighed on the greenback.
- US Treasury yields eased from their recent highs but remain at the upper end of their monthly range.
- XAUUSD is technically bearish, although losing downward momentum in the near term.
Spot gold fell to a fresh monthly low of $1,709.61 a troy ounce, maintaining the red but off the mentioned low at the time being. The dollar surged throughout the first half of the day but lost steam following the release of tepid US employment-related data. The ADP report showed that the private sector added 132K new job positions in August, much worse than the 288K expected and below the previous 270K.
The greenback is also suffering from month-end flows, but the pullback has been quite limited, somehow suggesting that dollar buyers are far from done. US Treasury yields are retreating from their early highs but holding at the upper end of their latest range, with the 10-year note currently yielding 3.11%. Wall Street, in the meantime, struggles to turn green, with the major indexes seesawing around their opening levels.
Gold price short-term technical outlook
XAUUSD is closing a fifth consecutive month with sharp losses and is about to confirm a long-term double-top pattern. The pair reached record highs in the $2,070 price zone in August 2020 and March 2022, while in between, it posted relevant lows in the $1,670 area, which is now the neckline of the figure. A clear break below it should imply a $400 slump.
Technical readings in the daily chart favor the downside, although indicators are losing their bearish strength near oversold readings, suggesting the bright metal may soon correct some of its recent losses. Nevertheless, it remains well below bearish moving averages, also below the 61.8% retracement of its latest daily rally at $1,729.25, the immediate resistance level.
In the 4-hour chart, technical indicators aim higher within negative levels, reflecting the ongoing near-term recovery, but falling short of suggesting further gains. The 20 SMA has extended its decline and now converges with the aforementioned Fibonacci resistance, reinforcing it.
Support levels: 1,703.90 1,692.35 1,684.00
Resistance levels: 1,729.25 1,744.20 1,759.20
XAUUSD Current price: $1,717.15
- Tepid US employment-related data and month-end flows weighed on the greenback.
- US Treasury yields eased from their recent highs but remain at the upper end of their monthly range.
- XAUUSD is technically bearish, although losing downward momentum in the near term.
Spot gold fell to a fresh monthly low of $1,709.61 a troy ounce, maintaining the red but off the mentioned low at the time being. The dollar surged throughout the first half of the day but lost steam following the release of tepid US employment-related data. The ADP report showed that the private sector added 132K new job positions in August, much worse than the 288K expected and below the previous 270K.
The greenback is also suffering from month-end flows, but the pullback has been quite limited, somehow suggesting that dollar buyers are far from done. US Treasury yields are retreating from their early highs but holding at the upper end of their latest range, with the 10-year note currently yielding 3.11%. Wall Street, in the meantime, struggles to turn green, with the major indexes seesawing around their opening levels.
Gold price short-term technical outlook
XAUUSD is closing a fifth consecutive month with sharp losses and is about to confirm a long-term double-top pattern. The pair reached record highs in the $2,070 price zone in August 2020 and March 2022, while in between, it posted relevant lows in the $1,670 area, which is now the neckline of the figure. A clear break below it should imply a $400 slump.
Technical readings in the daily chart favor the downside, although indicators are losing their bearish strength near oversold readings, suggesting the bright metal may soon correct some of its recent losses. Nevertheless, it remains well below bearish moving averages, also below the 61.8% retracement of its latest daily rally at $1,729.25, the immediate resistance level.
In the 4-hour chart, technical indicators aim higher within negative levels, reflecting the ongoing near-term recovery, but falling short of suggesting further gains. The 20 SMA has extended its decline and now converges with the aforementioned Fibonacci resistance, reinforcing it.
Support levels: 1,703.90 1,692.35 1,684.00
Resistance levels: 1,729.25 1,744.20 1,759.20
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.