Gold Price Forecast: Pressure persists November low at risk of giving up

XAU/USD Current price:  $1,765.52

• The dollar advances alongside US Treasury yields, but gains are moderate.
• Wall Street advances despite negative hints from its overseas counterparts.
• XAU/USD trades at its lowest in a month and will likely keep falling.

Gold fell to a 1-month low of $1,763.33 a troy ounce, bouncing just modestly from it and currently trading around 1,767.00. The bright metal weakened the most during US trading hours, as the American dollar met some market’s favour. Nevertheless, the greenback keeps trading within familiar levels against most major rivals, as investors await US employment figures to be out on Friday and central banks’ updates before the year-end.

The American currency is moving alongside government bond yields, as the US 10-year Treasury note advanced post-Wall Street’s opening to 1.456%. Meanwhile, US indexes trade in the green, despite the negative hints coming from their overseas counterparts. Overall, gold retains its broad weakness despite usually seen as a hedge against inflation.

Gold price short-term technical outlook

XAU/USD keeps approaching its November low at 1,758.81, the immediate support level and a probable bearish target. The bearish potential is clear in the daily chart, as the bright metal posted a lower low while it continues to develop below all of its moving averages. At the same time, technical indicators have strong downward momentum, standing well into negative levels.

Technical readings in the 4-hour chart also hint at further slides, as the metal remains near its daily low following a short-lived advance. The 20 SMA provides dynamic resistance around 1,783.00, accelerating south below the longer ones. Finally, technical indicators have turned flat within negative levels, holding near oversold readings and without signs of bearish exhaustion.

Support levels: 1,758.80  1,745.20 1,734.90

Resistance levels: 1,783.00 1,792.25 1,803.85  

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