Gold Price Forecast: XAU/USD shows weakness, unable to hold above $1,800

Matías Salord FXStreet

XAU/USD Current price: $1,793.04

US data keeps US Treasury yields off lows, helping the greenback.
DXY keeps moving sideways, looking at next week’s FOMC meeting.
XAU/USD short-term outlook back to neutral after failing to hold above $1,800.

Gold prices are falling on Wednesday, back under $1,800 the ounce and near the $1,790 area. The yellow metal is more than pulling back after reaching on Tuesday at $1,808.65, the highest level in a week. The combination of a rebound in US yields and a steady dollar pushed XAU/USD to the downside.

Economic data from the US showed manufacturing activity in the New York state area, measured by the Empire index, rose unexpectedly in September from 18.2 to 34.3. In a different report, Industrial Production rose 0.4% in August. The numbers helped the dollar boosting US yields. On Thursday, data to be released include retail sales, jobless claims, and the Philly Fed. Those numbers will be watched closely ahead of next week’s FOMC meeting. Wednesday’s figures boosted US yields, with the 10-year rising from 1.27% to 1.31%. The sell-off in bonds weakened XAU/USD.

Gold price short-term technical outlook

Gold failed to hold above $1,805 and then dropped below $1,800, extending the soft tone. It is approaching the $1,790 area, holding a negative tone. Gold could extend losses to the lower support of the current range at $1,780. A break of the mentioned level should trigger more weakness, exposing the next support area at $1,770.

The 200-day moving average capped the rally in gold at $1,808. A daily close above should point to more gains targeting $1,820 and then $1,833 (July, August and September highs). XAU/USD needs to recover $1,800 to alleviate the bearish pressure in the short-term. While below, the bias would be neutral to bearish.

Support levels: 1,790 1,780.00 1,769.50 1,760.00 1,747.00

Resistance levels: 1,808.80 1,820.00 1,833.50

View Live Chart for the XAU/USD

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

GBP/USD clings to multi-day peaks below 1.3500

GBP/USD trades with marked gains on Friday, now giving away some gains following an earlier surpass of the key 1.3500 yardstick. Indeed, Cable gathers fresh steam amid the strong offered stance in the Greenback, all after US NFP badly missed expectations in July.

EUR/USD: Post-NFP bounce falters around 1.1580

EUR/USD reverses Thursday’s decline and trades with solid gains in the 1.1560 region, or two-month peaks, on Friday. The pair’s firm performance comes in a context of a sharp correction in the US Dollar as investors continue to assess disheartening US NFP readings.

How Wall Street rigs the game [Video]

In this week’s Live from the Vault, Andrew Maguire is joined by Peter Antico and Sean Stone to discuss the Paradigm of Money - an in-depth expose of financial market corruption, from naked shorting to the two-tier system that protects Wall Street.

XRP Price Forecast: XRP nears critical $1.00 support

Ripple (XRP) remains pressured on Friday, trading around $1.03 at the time of writing. The token appears to hold this current level as support but lacks a catalyst to sustain a knee-jerk rebound toward the next key resistance at $1.10.

Is Gold about to enter its biggest bull run since 2020?

Gold has stormed back into the spotlight and its next move could leave late buyers chasing. On August 5, the yellow metal surged almost 7% – roughly $174 – to close near $4,308 an ounce, posting one of its biggest daily advances in recent history. A weaker U.S dollar, falling Treasury yields, changing Federal Reserve expectations and renewed safe-haven demand all struck at once.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.