Gold Price Forecast: XAU/USD remains exposed to downside risks below $1,994
|Gold stays under bearish pressure at the beginning of the week and trades deep in negative territory below $1,980. As FXStreet’s Dhwanie Mehta notes, XAU/USD appears vulnerable below $1,994 confluence resistance.
Risk trends will continue to lead the way
“Should risk aversion intensify in the upcoming sessions, the US dollar Index is likely to benefit further and regain 100.00 vs. major rivals. Gold price, therefore, appears vulnerable, also undermined by the ongoing rout in the US Treasuries.”
“On selling resurgence, gold sellers could retest Friday’s low of $1,959, below which a test of the $1,950 psychological barrier will be inevitable. The next relevant support awaits at the ascending 100-SMA at $1,943.”
“Recapturing 50-SMA at $1,979 on a sustained basis is critical to initiating any meaningful recovery towards $1,994, which is a powerful resistance. Acceptance above the latter will open doors towards the $2,000 mark, beyond which the $2,010 supply zone will be challenged once again.”
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.