Gold Price Forecast: Buying intensity eases amid growth concerns
XAUUSD Current price: $1,781.63
- Softer-than-anticipated Chinese data undermined the market mood at the beginning of the week.
- The EU is working to revive a nuclear deal with Iran amid energy shortages.
- XAUUSD has lost its positive momentum and may fall further in the near term.
Spot gold fell to a one-week low of $1,772.91 a troy ounce on Monday as risk aversion benefited the American currency against all of its major rivals. XAUUSD managed to bounce after the US opening, as Wall Street opened in positive territory despite the ruling dismal market mood. Softer-than-anticipated Chinese data released at the beginning of the day spurred risk aversion as the focus returned to a potential economic setback.
Meanwhile, China has announced more drills around Taiwan after a new delegation of US lawmakers met with Taiwanese President Tsai Ing-wen. At the same time, the EU is working on a nuclear deal with Iran, with the latter expected to provide an answer by the end of the day. The EU wants to bring back Tehran’s nuclear deal amid energy shortages triggered by the Ukraine war.
Gold price short-term technical outlook
XAUUSD trades around $1,780 a troy ounce, retaining most of its daily losses. The daily chart hints at further slides, although technical readings do not confirm a bearish continuation. The metal is trading above a bullish 20 SMA while below the 100 and 200 SMAs, with the shorter one crossing below the longer one. Technical indicators, in the meantime, turned lower but hold within positive levels.
In the near term, and according to the 4-hour chart, the bearish pressure eased, but the risk is skewed to the downside. The pair has broken below a now mildly bearish 20 SMA, although still developing above the longer ones. Technical indicators, in the meantime, remain within negative levels, lacking clear directional strength.
Support levels: 1,769.00 1,754.30 1,742.50
Resistance levels: 1,792.30 1,803.10 1,816.60
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
Author
Valeria Bednarik
FXStreet
Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.
