Gold Price Forecast: Dollar poised for another run higher

XAUUSD Current price: $1,742.80

• Market concerns remain the same, but traders paused panic trading.
• US Treasury yields soared amid recession concerns, aggressive monetary tightening.
• XAUUSD holds near 2022 yearly low, maintaining the bearish bias.

Gold Price trades at $1,742 a troy ounce,  consolidating its latest losses. The bright metal bottomed this week at $1,732.19, its lowest since September 2021, as concerns about slowing economic growth fueled demand for the greenback. The better tone of equities following the release of the FOMC Meeting Minutes put a halt to panic, but the song remains the same. Chances of a global recession continue to increase in an overheated inflation environment.

Equities maintain the positive momentum on Thursday, but the American currency also retains its strength, resuming its advance after the US opening. Meanwhile, government bond yields soared amid prospects of an economic setback coupled with aggressive monetary policy tightening. The yield on the 10-year Treasury note jumped to 3.01%, while that on the 2-year note hit 3.05%. The yield curve remains inverted, reflecting investors’ concerns.

Gold Price short-term technical outlook

From a technical point of view, XAUUSD is still at risk of falling. The daily chart shows that technical indicators hold near their recent lows and within oversold readings, with no clear directional strength. Meanwhile, the 20 SMA maintains its firmly bearish slope, providing dynamic resistance at around $1815, as the longer ones stand above the latter.

The near-term picture is also bearish. The 4-hour chart shows that XAUUSD is developing far below bearish moving averages while technical indicators consolidate at oversold levels. The pair met sellers near $1,749.00, the immediate resistance level, with a recovery beyond it, opening the door to further corrective gains. On the other hand, a break below the aforementioned weekly low should lead to an approach to the $1,700 threshold.

Support levels:  1,732.10 1,720.30 1,708.50

Resistance levels: 1,749.00 1,765.00 1.777.20

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