Gold Price Forecast: XAUUSD unlikely to stage a meaningful recovery

Gold witnessed an intraday turnaround from a fresh multi-month low touched on Monday. But as FXStreet’s Haresh Menghani notes, the 200-day moving average (DMA) around $1,836 is likely to cap XAUUSD.

Investors eye the US Retail Sales for some impetus ahead of Fed Chair Powell’s speech

“The focus now shifts to Fed Chair Jerome Powell's speech later this Tuesday. Heading into the key event risk, the US monthly Retail Sales figures would influence the USD price dynamics and produce some meaningful trading opportunities around gold.”

“The attempted recovery move stalled just ahead of the $1,830 level. This is closely followed by the very important 200-day SMA, around the $1,836 region, which should act as a pivotal point for short-term traders. Sustained strength beyond might trigger a fresh bout of a short-covering move and lift spot prices back towards the $1,859-$1,860 supply zone.”

“The $1,811-$1,808 region now seems to protect the immediate downside ahead of the $1,800 mark and the overnight swing low, around the $1,786 area. A convincing breakthrough the said support levels would make gold vulnerable to weaken further below the 2022 low, around the $1,780 level. The downward trajectory could get extended towards testing the next relevant support near the $1,760 zone and the $1,753-$1,752 region.”