Gold Price Forecast: The bright metal is losing its shine sub-$1,800
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 OFFER
XAUUSD Current price: $1,776.75
- US Treasury yields are on the rise, weighing on spot gold.
- Substantial gains in US stock indexes limit the dollar’s strength in the American session.
- XAUUSD keeps losing its bullish potential, despite a dismal ruling mood.
Spot gold remains under selling pressure, trading around $1,775 a troy ounce. The greenback maintained its strong footing throughout the first half of the day as market players remain cautious amid recession concerns.
Demand for the American dollar receded after Wall Street’s opening, as the DJIA and the S&P 500 opened with substantial gains, extending their rallies at the time being. The Nasdaq Composite lags as it trades a handful of points below its opening level. In the case of XAUUSD, it was barely enough to halt the slump, although it did not help gold to bounce back, somehow hinting at further slides in the upcoming sessions.
Meanwhile, US government bond yields are rising, making the bright metal less attractive. The 10-year Treasury note currently yields 2.83%, while the 2-year note yield stands at 3.24%. The yield curve remains inverted, but the distance shrank to 41 bps from the record peak of 65 reached after the release of US inflation figures.
Gold price short-term technical outlook
XAUUSD's daily chart shows that buying interest keeps easing. The pair has posted a lower low and a lower high, approaching a bullish 20 SMA, which provides dynamic support at around $1,761.10. The 100 SMA, in the meantime, accelerated its slide above the current level after crossing below the 200 SMA. Finally, technical indicators maintain their downward slopes, although holding above their midlines.
The 4-hour chart offers a neutral-to-bearish stance. The 100 SMA advances below the current level, although losing its upward strength, while the 20 SMA gains downward momentum above the price. Technical indicators remain directionless below their midlines, reflecting the absence of buying interest while skewing the risk to the downside.
Support levels: 1,761.10 1,754.25 1,742.50
Resistance levels: 1,783.10 1,792.30 1,803.10
XAUUSD Current price: $1,776.75
- US Treasury yields are on the rise, weighing on spot gold.
- Substantial gains in US stock indexes limit the dollar’s strength in the American session.
- XAUUSD keeps losing its bullish potential, despite a dismal ruling mood.
Spot gold remains under selling pressure, trading around $1,775 a troy ounce. The greenback maintained its strong footing throughout the first half of the day as market players remain cautious amid recession concerns.
Demand for the American dollar receded after Wall Street’s opening, as the DJIA and the S&P 500 opened with substantial gains, extending their rallies at the time being. The Nasdaq Composite lags as it trades a handful of points below its opening level. In the case of XAUUSD, it was barely enough to halt the slump, although it did not help gold to bounce back, somehow hinting at further slides in the upcoming sessions.
Meanwhile, US government bond yields are rising, making the bright metal less attractive. The 10-year Treasury note currently yields 2.83%, while the 2-year note yield stands at 3.24%. The yield curve remains inverted, but the distance shrank to 41 bps from the record peak of 65 reached after the release of US inflation figures.
Gold price short-term technical outlook
XAUUSD's daily chart shows that buying interest keeps easing. The pair has posted a lower low and a lower high, approaching a bullish 20 SMA, which provides dynamic support at around $1,761.10. The 100 SMA, in the meantime, accelerated its slide above the current level after crossing below the 200 SMA. Finally, technical indicators maintain their downward slopes, although holding above their midlines.
The 4-hour chart offers a neutral-to-bearish stance. The 100 SMA advances below the current level, although losing its upward strength, while the 20 SMA gains downward momentum above the price. Technical indicators remain directionless below their midlines, reflecting the absence of buying interest while skewing the risk to the downside.
Support levels: 1,761.10 1,754.25 1,742.50
Resistance levels: 1,783.10 1,792.30 1,803.10
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.