Gold Price Forecast: Next target on the downside for XAU/USD aligns at $1,750
|Gold registered heavy losses for the third straight week. As FXstret’s Eren Sengezer notes, sellers eye $1,750 as the Federal Reserve stays on tightening path.
Fed looks to accelerate taper
“As long as investors remain confident that Omicron will not put major pressure on the health care system even if vaccines need to be adjusted, the Fed is likely to remain on its tightening path and limit gold’s recovery attempts.”
“On Friday, the US Bureau of Labor Statistics will release Consumer Price Index (CPI) figures for November. When the October CPI print surpassed the market expectation, XAU/USD shot higher with the initial reaction. We could see a similar reaction in case the report reveals that the CPI continued to increase in November. A hot inflation reading, however, would also provide a boost to the dollar, not allowing gold to capitalize on the data.”
“On the downside, interim support seems to have formed at $1,760 (December 2 low) ahead of $1,750 (static level). A daily close below the latter could open the door for additional losses toward $1,740.”
“$1,780 (Fibonacci 61.8% retracement of the latest uptrend) aligns as first resistance before $1,790 (100-day SMA, 200-day SMA) and $1,800 (psychological level, Fibonacci 50% retracement).”
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