Gold Price Forecast: XAU/USD fails to hold above $1800, tumbles toward $1780
|- Recovery of the US dollar triggers sell-off in metals.
- Gold tumbles losing more than $10 in a few minutes, later trims losses.
Gold dropped below $1800 and tumbled to $1782, reaching the lowest level since Thursday. It then trimmed losses and rose toward $1790. It still remains under pressure, as the US dollar strengthens across the board.
The greenback gained momentum during the American session following the release of better-than-expected US economic data. US bond yields bounced to the upside with the 10-year rising from the lowest in a week at 1.61 to 1.66%. The DXY turned positive and rose toward 94.00, to test the weekly top.
The decline in metals during the last hours was significant. Silver is down by more than 2%, trading under $24.00. XAG/USD reversed sharply, extending the retreat from monthly highs. XAU/USD is falling 1.05%.
The sharp decline in gold adds doubts to the current upside short-term bias. A recovery above $1790 would be a positive development, but in order to keep the doors open to more gains, XAU/USD needs to regain $1800.
A break under $1777 should sign to further losses and to a deterioration in the technical outlook; targeting $1770 initially and then $1760.
Technical levels
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