Gold Price Forecast: XAU/USD revers sharply from $1810 and tumbles toward $1790
|- Metals are unable to benefit from a sharp decline of the US dollar across the board.
- XAU/USD faces resistance at $1810 and fails to hold above $1800.
Gold dropped almost $20 during the last hour and turned negative for the day. XAU/USD jumped to $1810, reaching the highest level since last Friday and then it changed its direction falling toward $1790. It bottomed at $1792, and it is hovering around $1795, still looking for a direction.
The short-term trend still points to the upside in gold, but gains were capped again at $1810 and it is also showing difficulties holding above $1800, pointing to a lack of strength is moving higher. A key support is seen around $1785, an uptrend line that if broken could trigger more losses. On the upside, the key level is $1810.
The reversal in gold took place even amid a slide of the greenback across the board. The DXY trades at 93.39, down 0.50%, at the lowest level in a month. At the same time, the 10-year US yield is modestly higher.
Economic data from the US came in mixed. The preliminary reading of Q3 GDP showed an expansion at a 2% annualized rate, below the 2.7% expected. On the positive, jobless claims dropped more than expected to the lowest level since March 2020. The numbers are relevant ahead of next’s week FOMC meeting.
Technical levels
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