Gold Price Forecast: XAU/USD eyes daily close for bear pennant confirmation, downside remains favored
|Gold price is back in the red zone. As FXStreet’s Dhwani Mehta notes, XAU/USD awaits bear pennant confirmation for a fresh downswing.
There is more room to the downside
“The non-interest-bearing yellow metal appears vulnerable with more tightening coming in from Switzerland and the UK in the session ahead. Meanwhile, should the tensions between Russia and the West intensify, the dollar could see the additional upside, as a flight to safety may remain at full steam. Therefore, XAU/USD appears in a lose-lose situation in the near term.”
“Gold price briefly breached the rising trendline support at $1,664 on Wednesday but averted confirmation of a bear pennant by closing at the day around $1,674. Daily closing below the support is needed to validate the bearish continuation pattern. The $1,650 psychological level will be the immediate line of defense, below which sellers will yearn for a sustained move towards the next support at around $1,643.”
“On the flip side, any recovery attempts will need acceptance above the recent range highs near $1,680. The next upside barrier is aligned at around $1,700. Daily closing above the latter is critical to unleashing the further recovery towards the bearish 21-Daily Moving Average (DMA) at $1,704.”
See – BoE Preview: Forecasts from 10 major banks, a close call between 50 bps and 75 bps
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.