Gold Price Forecast: XAU/USD slumps to fresh weekly lows and pierces the 200-DMA around $1835
|- Gold spot drops in the day and is losing 0.89%.
- An upbeat market mood weighed on the non-yielding metal, despite that US Treasury yields finished the session with losses.
- Gold Price Forecast (XAU/USD): A daily close below the 200-DMA would send Gold Price tumbling towards $1800.
Gold spot (XAU/USD) continues tumbling in the day and briefly pierced the 200-day moving average (DMA) at $1835.31 a troy ounce, amidst an upbeat market mood as illustrated by US equities recording gains between 0.20% and 1.30%. At the time of writing, XAU/USD is trading at $1837.94.
The Fed tightening risks that could spur a recession, China’s Covid-19 zero-tolerance restrictions, which halted factory production, triggered a slowing in exports, and the Ukraine-Russia conflict, are sentiment factors that, even though traders ignored in the session, they need to be aware of them.
In the meantime, the US Dollar Index, a gauge of the greenback’s value against a basket of its rivals, is rallying 0.68%, up at 103.911 as the New York session winds down. The US 10-year Treasury yield approaches the 3% threshold, recovering some ground after reaching a daily low at 2.942%.
Gold Price Forecast (XAU/USD): Technical outlook
In what appears to be a technical move, XAU/USD moved from around $1850 a troy ounce, below the S1 daily pivot point at $1841.73, and pierced the 200-DMA briefly as the New York session finished. It is worth noting that a daily close below the previously mentioned 200-DMA would exacerbate a fall toward $1800.
If that scenario plays out, the XAU/USD first support would be a four-year-old upslope trendline near the $1815-25 region. Once cleared, the XAU/USD’s bears’ next target would be $1800, followed by the YTD low at $1780.18.
Key Technical Levels
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.