Gold Price Forecast: Back below $1,800 amid upbeat US data
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UNLOCK OFFERXAU/USD Current price: $1,795.17
- The Q3 US Gross Domestic Product was upwardly revised from 2,9% to 3.2%.
- Wall Street changed course and dipped in the red, DJIA trimmed Wednesday's gains.
- XAU/USD turned bearish in the near term and is approaching a strong support area at around $1,785.
Spot gold gyrated south on Thursday and fell below the $1,800 threshold, as upbeat US data coupled with falling equities fueled the demand for the American Dollar after Wall Street's opening. US annual growth was upwardly revised to 3.2%, according to the Q3 Gross Domestic Product report. Additionally, Initial Jobless Claims for the week ended December 16 printed at 216K, better than the 222K expected.
Stocks reacted negatively to the headline, while the yield on the 2-year Treasury yields reverted to pre-opening losses and turned green, now hovering around 4.23%. The 10-year note, on the other hand, yields 3.66%, holding below its daily opening.
XAU/USD price short-term technical outlook
XAU/USD pressures intraday lows in the $1,795 price zone, further losing its bullish potential according to the daily chart but falling short of suggesting a steeper decline. For that, the pair would need to extend its current slump below $1,785.60, where the 20 and 200 SMAs converge. The shorter moving average currently crosses above the longer one, further limiting the downside. At the same time, technical indicators extended their slides, with the Momentum pressuring its 100 line and the RSI currently at around 55.
In the near term, the risk is skewed to the downside. The 4-hour chart shows that technical indicators crossed their midlines into negative territory, maintaining their bearish slopes. At the same time, XAU/USD fell below a now flat 20 SMA, although it holds above a bullish 100 SMA.
Support levels: 1,785.60 1,777.45 1,765.80
Resistance levels: 1,789.10 1,801.30 1,814.50
XAU/USD Current price: $1,795.17
- The Q3 US Gross Domestic Product was upwardly revised from 2,9% to 3.2%.
- Wall Street changed course and dipped in the red, DJIA trimmed Wednesday's gains.
- XAU/USD turned bearish in the near term and is approaching a strong support area at around $1,785.
Spot gold gyrated south on Thursday and fell below the $1,800 threshold, as upbeat US data coupled with falling equities fueled the demand for the American Dollar after Wall Street's opening. US annual growth was upwardly revised to 3.2%, according to the Q3 Gross Domestic Product report. Additionally, Initial Jobless Claims for the week ended December 16 printed at 216K, better than the 222K expected.
Stocks reacted negatively to the headline, while the yield on the 2-year Treasury yields reverted to pre-opening losses and turned green, now hovering around 4.23%. The 10-year note, on the other hand, yields 3.66%, holding below its daily opening.
XAU/USD price short-term technical outlook
XAU/USD pressures intraday lows in the $1,795 price zone, further losing its bullish potential according to the daily chart but falling short of suggesting a steeper decline. For that, the pair would need to extend its current slump below $1,785.60, where the 20 and 200 SMAs converge. The shorter moving average currently crosses above the longer one, further limiting the downside. At the same time, technical indicators extended their slides, with the Momentum pressuring its 100 line and the RSI currently at around 55.
In the near term, the risk is skewed to the downside. The 4-hour chart shows that technical indicators crossed their midlines into negative territory, maintaining their bearish slopes. At the same time, XAU/USD fell below a now flat 20 SMA, although it holds above a bullish 100 SMA.
Support levels: 1,785.60 1,777.45 1,765.80
Resistance levels: 1,789.10 1,801.30 1,814.50
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