Gold Price Forecast: XAU/USD keeps $1725 in sight while below critical $1762 resistance
|Currently, XAU/USD is fluctuating in a tight channel above $1,750. In the view of FXStreet’s Dhwani Mehta, gold remains exposed to downside risks ahead of a big week.
See – Gold Price Forecast: XAU/USD to extend its declining trend due to three reasons – ABN Amro
The bearish grip on gold price remains intact
“The Fed tapering speculations and energy crisis will continue to dominate the market sentiment amid holiday-thinned light trading conditions, as the US and Canada are closed in observance of their respective national holiday. Investors await Wednesday’s US inflation data and the FOMC minutes for a decisive move in gold price.”
“Gold failed to find acceptance above the short-term critical resistance of the 21-Daily Moving Average (DMA) at $1762 on Friday, leaving the downside risks exposed.”
“On a daily closing below the $1750-$1745 demand area, the multi-week troughs near $1720 could be on the gold sellers’ radars.”
“A firm break above the 21-DMA barrier is critical to initiate a convincing uptrend in XAU/USD. The downward-sloping 50-DMA at $1778 will be back in play, above which a test of the $1800 round number will be inevitable.”
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.