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.”
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