Gold Price Forecast: XAU/USD under pressure, hits fresh four-week lows near $1760
|- XAU/USD drops further even as US yields remain in recent range.
- US dollar and equities mixed, oil rebounds, and metals hold soft tone.
Gold prices continue under pressure on Thursday. XAU/USD dropped further to 1762$, reaching the lowest level in four weeks; it remains near the lows, looking at the 1760$ support area.
The declines are taking place even as US yields remain relatively steady and amid mixed US dollar. Also in Wall Street, equity prices are mixed. Price action suggests the negative tone in gold has strengthened and a slide below $1760 would expose the next support at $1745/50. A consolidation above $1780 should alleviate the bearish pressure, clearing the way for a test of $1790.
Economic data released on Thursday in the US showed a lower than expected increase in initial jobless claims. On Friday, the Non-farm payroll is due. Those numbers could have a significant impact on monetary policy expectations, affecting yields, the dollar and gold.
The weekly chart also shows gold under pressure, headed toward the third decline in a row, and price back under the 20-week simple moving average. If it ends Friday around current levels would be the lowest weekly close since early October.
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.