Gold Price Forecast: XAU/USD remains vulnerable while below the $1,792 critical resistance
|The bearish grip is still intact on the yellow metal. As FXStreet’s Dhwani Mehta notes, risks remain skewed to the downside amid ebbing Omicron fears.
Risk-on mood at full steam amid easing Omicron fears
“The risk-on flows remain in vogue, as China continues to pledge support measures to stimulate economic growth while global scientists and experts downplay risks from the new covid variant. The Reserve Bank of Australia’s (RBA) patient policy stance also added to the market’s optimism.”
“The bears defied the Golden Cross confirmation, as the powerful resistance (confluence of the 50, 100 and 200-DMAs) around $1,792 continues to cap the upside attempts. A daily closing above the key confluence will expose the $1,800 barrier. The further recovery could call for a retest of Wednesday’s high at $1,809, above which the previous month’s high at $1,814 will put to test.”
“On the downside, Friday’s low at $1,766 could come to the rescue of gold bulls, below which the crucial support is seen at the horizontal trendline at $1,760. Further south, the $1,750 psychological level will challenge the bullish commitments.”
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.