Gold Price Forecast: Short-term technical indicators point to more XAU/USD weakness
|So far this Thursday, gold price is staging a minor comeback around $1820 region as the dollar and yields consolidate the solid gains. ‘Buy the dips’ rescues XAU/USD after the Fed-blow, but for how long? The technical picture has taken the shape of a bear flag, which is a bearish continuation pattern, FXStreet’s Dhwani Mehta briefs.
There is scope for additional XAU/USD declines
“Bargain hunting, in light of the recent crash, could be associated with the rebound in gold price. The Fed’s hawkish signal is likely to keep the US currency afloat ahead of the weekly Jobless Claims data and other minority reports, which will maintain the downside pressure on gold. Therefore, gold price could resume the downtrend in the sessions ahead.”
“A fresh downswing, with a test of Wednesday low of $1803 looks inevitable. If the selling pressure accelerates below $1800, the bears will aim for the pattern target measured at $1769.”
“A sustained break above the rising trendline resistance at $1829 could add extra legs to the rebound, driving the gold price towards a downward-pointing 21-Hourly Moving Average (HMA) at $1838.”
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