Gold Price Analysis: Technical chart suggests a make-or-break moment for XAU/USD
|Gold (XAU/USD) remains under heavy selling pressure so far this Tuesday’s trading, as a four-day losing streak extends amid relentless demand for the US dollar across its main competitors. The yellow metal is at a critical juncture as FXStreet’s Dhwani Mehta notes.
See – Gold Price Analysis: XAU/USD’s outlook supported by higher inflation and a weaker USD – ANZ
Key quotes
“The price of gold will remain at the mercy of the US dollar dynamics while the price action in the US Treasury yields will be also closely followed amid a lack of relevant US economic data. Markets could also resort to profit-taking after the recent sell-off.”
“Gold’s 4-hour chart shows that the price is on the verge of confirming a falling channel breakdown if it closes the candle below the trendline support at $1712. Should the pattern get validated, a drop towards the June 2020 lows at $1671 cannot be ruled out.”
“If the XAU bulls manage to defend the critical support, a rebound towards the bearish 21-simple moving average (SMA) at $1755 could be in the offing.”
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.