Gold Price Forecast: Technicals hint at more slides ahead
XAUUSD Current price: $1,843.81
- Investors are cautious ahead of FOMC Meeting Minutes and hints on monetary policy.
- US government bond yields bounced back after reaching fresh weekly lows.
- XAUUSD is technically poised to extend its decline, $1,838.00 provides support.
Gold price is down on Wednesday as the greenback met renewed demand. XAUUSD bottomed during the American session at $1,841.84 a troy ounce, holing nearby ahead of the FOMC Meeting Minutes. Generally speaking, investors remain cautious amid signs of slowing economic growth and doubts the US Federal Reserve will be able to tame inflation.
As of lately, policymakers have been somehow cooling down expectations of an aggressive monetary policy, now suggesting a couple more of 50 bps rate hikes before a pause to analyze the effects on the economy. The Fed’s document will likely provide some clues as to what members are planning for the upcoming months.
Meanwhile, stocks hover around their opening levels. European indexes managed to post modest gains, while US ones are mixed. US government bond yields have recovered from Tuesday’s slide, although the 10-year Treasury note currently yields 2.75%.
Gold Price short-term technical outlook
According to the daily chart, XAUUSD is poised to extend its decline. XAUUSD has retreated below a mildly bearish 20 SMA while it approaches a directionless 200 SMA, offering dynamic support around 1,838.00. Technical indicators, in the meantime, retreat from their midlines, gaining bearish traction within negative levels.
The bearish case is clearer in the 4-hour chart, as gold is now trading below all of its moving averages. At the same time, technical indicators have entered negative territory, maintaining their bearish slopes. The bearish pressure could ease if the metal recovers above $1,849.20, a former relevant support level.
Support levels: 1,838.00 1,826.30 1,814.90
Resistance levels: 1,849.20 1,854.50 1,869.70
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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.
