Gold Price Forecast: XAU/USD's recovery to face a bumpy road ahead
|Gold price managed to defend the critical rising trendline support at $1765, despite a brief dip below it, as the bulls found fresh bids at the horizontal 21-Daily Moving Average (DMA) at $1760. Although XAU/USD rebounds towards the key $1795 barrier, downside risks remain intact, according to FXStreet’s Dhwani Mehta.
Bullish potential appears limited due to impending bear cross
“The broader market sentiment and the yields’ price action will be closely watched for placing fresh bets on gold price.”
“On the road to recovery, XAU/USD is likely to face immediate resistance at the horizontal 50-DMA at $1778. A sustained move above the latter could call for a retest of the 100 and 200-DMAs confluence zone at $1795. However, an impending bear cross, with the 100-DMA set to cut the 200-DMA from above, warrants caution for gold bulls.”
“If the 21-DMA support at $1760 gives way convincingly, then the previous week’s demand area at $1750-$1745 would be back into play. Further south, the multi-week lows of $1722 could be on the sellers’ radars.”
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.