Gold Price Analysis: XAU/USD to suffer additional losses with a daily close below $1,800
|Gold (XAU/USD) struggled to make a decisive move in either direction last week. The near-term technical outlook suggests that sellers remain in control with the $1,800 support under threat, FXStreet’s Eren Sengezer reports.
Key quotes
“On Tuesday, the ZEW Survey - Economic Sentiment reports for the euro area and Germany will be watched closely by investors alongside the fourth-quarter Gross Domestic Product (GDP) figures for the eurozone. If these data point out to further weakness in the euro area economy, the greenback could start attracting investors and weigh on XAU/USD.”
“On Wednesday, January Retail Sales data will be featured in the US economic docket. The market consensus points out to a 0.7% increase following December’s 0.7% contraction. A better-than-expected print could help the USD outperform its rivals. Later in the day, the FOMC will release the minutes of its February meeting.”
“On the downside, $1,800 (psychological level) could be seen as the first support. A daily close below that level could open the door for additional losses toward $1,785 (Feb. 4 low) ahead of $1,765 (Nov. 30 low/starting point of December rally).”
“The initial resistance aligns at $1,845 (Fibonacci 61.8% retracement of the latest uptrend/20-day SMA). Even if gold manages to clear that hurdle, buyers could remain hesitant to return unless XAU/USD breaks above $1,855 (200-day SMA). Finally, the 100-day SMA around $1,870 is likely to act as the next dynamic resistance.”
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.