Gold Price Analysis: XAU/USD to extend its downfall below the $1895 support
|Gold has slipped below $1,900 after hovering above that level for several days. XAU/USD risks further falls as technical setup turns bearish, FXStreet’s Dhwani Mehta briefs.
See – Gold Price Analysis: Three factors to drive XAU/USD higher – DBS Bank
Gold to remain at the mercy of the risk trends and dollar dynamics
“If the risk-off mood intensifies, the US dollar is likely to catch a fresh bid wave, exacerbating the pain in gold. Meanwhile, an uptick in the Treasury yields, amid a potential revival of the risk-on trades, could also exert downside pressure on the yiedless gold.”
“The yellow metal will remain at the mercy of the dynamics in the dollar and yields, taking cues from the broader market sentiment, in absence of relevant US macro news.”
“Gold price is challenging critical 50-simple moving average (SMA) support at $1895, below which a sharp sell-off towards the bullish 100-SMA at $1873 cannot be ruled out.”
“Acceptance above powerful support turned resistance at $1901 is critical to negate the downside bias in the near-term. The next stop for the buyers is seen at the $1910 round number.”
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