Gold Price Forecast: XAU/USD Sellers push the price below $1,800, on broad US dollar strength
|- Gold trades at two-week lows, below $1,800.
- XAU/USD daily close below the 200-DMA could accelerate the fall.
- An ascending wedge in the 4-hour chart, its suggests next target could be at $1,750.
The yellow metal is falling for the second day in a row and it is trading around $1,794.41, down 1.58%, at the time of writing.
XAU/USD Price Forecast: technical outlook
Daily chart
Gold is testing the 50-day moving average (DMA) at $1,797, a crucial level as a bounce/break could accelerate the price either way. A bounce will motivate bulls to push the price above $1,800 on their way to higher prices. The first supply area will be the confluence of the 100-DMA and the 200-DMA around the $1,809-11 range. A decisive break of this essential resistance could drive the price to the August 4 high at $1,831.77.
On the flip side, a daily close under the 50-DMA could exert downward pressure on the XAU/USD. The first demand zone will be the August 19 low at $1,774.21. Once cleared, the following key support areas will be June 29 low at $1,750.74 and August 10 low at $1,717.79.
The Relative Strength Index is at 47.42, aiming lower, supporting the downward bias.
4-hour chart
XAU/USD broke the bottom trendline of an ascending wedge, thus confirming its validity and the downward trend. The next support on the way down would be the August 19 swing low at $1,774.21. A decisive break of the latter could threaten the $1,750.00 area.
On the flip side, bulls need to reclaim the 100-SMA at $1,802.15 to regain control. If the price breaks above that level, the next resistance is the 50-SMA, currently at $1,814.26. Once that supply area is cleared, the following resistance would be at $1,831.81.
The Relative Strength Index is at 30.02 flattish, having bounced from oversold levels, still supporting a downward continuation.
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