Gold Price Forecast: Corrective decline could reach 1,830
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFERXAU/USD Current price: $1,855.44
- US Treasury yields reached fresh weekly highs as concerns persist.
- Upbeat US Retail Sales and Industrial Production figures boosted the greenback.
- Gold reached a fresh multi-month high before returning to its comfort zone around 1,850.
Gold reached a fresh multi-month high of $1,877.15 a troy ounce, a level that was last seen in June this year, trimming intraday gains and returning to the 1,850 price zone ahead of Wall Street’s opening. Upbeat US data gave a boost to the greenback, also underpinned by persistently strong US government bond yields. The yield on the 10-year US Treasury note reached a new weekly peak of 1.635% amid continued inflation-related concerns.
The US published October Retail Sales, up in the month 1.7%, better than the 1.4% expected, while Industrial Production in the same month improved by 1.6%, more than doubling the market’s expectations. Finally, Capacity Utilization was up to 76.4% vs the 75.9% expected. Meanwhile, stocks present a better tone, with US indexes posting solid intraday gains after a mixed close from their overseas counterparts.
Gold price short-term technical outlook
XAU/USD trades in the red, down for a second consecutive day. The bright metal has an immediate support level at 1,848.90, the 23.6% retracement of its November rally. From a technical point of view, the daily chart suggests that gold is in a corrective decline, as technical indicators are barely retreating from overbought territory, while the metal keeps developing well above all of its moving averages.
The 4-hour chart shows that the bearish potential remains limited, as technical indicators hold above their midlines, with the Momentum already bouncing from around its 100 level. At the same time, the price has pierced its 20-SMA, now directionless, while the longer moving averages maintain their firmly bullish slopes far below the current level. The 38.2% retracement of the mentioned rally and some intraday highs makes the 1,830 price zone a relevant support and an attractive level for bulls if it’s reached.
Support levels: 1,848.90 1,837.50 1,830.00
Resistance levels: 1,870.10 1,883.00 1,895.20
XAU/USD Current price: $1,855.44
- US Treasury yields reached fresh weekly highs as concerns persist.
- Upbeat US Retail Sales and Industrial Production figures boosted the greenback.
- Gold reached a fresh multi-month high before returning to its comfort zone around 1,850.
Gold reached a fresh multi-month high of $1,877.15 a troy ounce, a level that was last seen in June this year, trimming intraday gains and returning to the 1,850 price zone ahead of Wall Street’s opening. Upbeat US data gave a boost to the greenback, also underpinned by persistently strong US government bond yields. The yield on the 10-year US Treasury note reached a new weekly peak of 1.635% amid continued inflation-related concerns.
The US published October Retail Sales, up in the month 1.7%, better than the 1.4% expected, while Industrial Production in the same month improved by 1.6%, more than doubling the market’s expectations. Finally, Capacity Utilization was up to 76.4% vs the 75.9% expected. Meanwhile, stocks present a better tone, with US indexes posting solid intraday gains after a mixed close from their overseas counterparts.
Gold price short-term technical outlook
XAU/USD trades in the red, down for a second consecutive day. The bright metal has an immediate support level at 1,848.90, the 23.6% retracement of its November rally. From a technical point of view, the daily chart suggests that gold is in a corrective decline, as technical indicators are barely retreating from overbought territory, while the metal keeps developing well above all of its moving averages.
The 4-hour chart shows that the bearish potential remains limited, as technical indicators hold above their midlines, with the Momentum already bouncing from around its 100 level. At the same time, the price has pierced its 20-SMA, now directionless, while the longer moving averages maintain their firmly bullish slopes far below the current level. The 38.2% retracement of the mentioned rally and some intraday highs makes the 1,830 price zone a relevant support and an attractive level for bulls if it’s reached.
Support levels: 1,848.90 1,837.50 1,830.00
Resistance levels: 1,870.10 1,883.00 1,895.20
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.