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

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

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD struggles to pull away from multi-week lows, holds near 1.1270

EUR/USD stays deep in the negative territory near 1.1270 during the American trading hours on Tuesday as the greenback continues to outperform its rivals. The data from the US showed that the CB Consumer Confidence Index declined to 113.8 in January from 115.2 in December. 


GBP/USD consolidates daily losses near mid-1.3400s

GBP/USD fell to its weakest level in three weeks below 1.3450 on Tuesday and seems to be having a difficult time staging a convincing rebound. Safe-haven flows continue to dominate the financial markets following the mixed data releases from the US.


Gold hits levels above $1850 for the first time in two months and retreats

A quick drop in US yields boosted XAU/USD that jumped from $1840 to $1853, reaching the highest level since November 19. It then pulled back all the way to $1840 and now is approaching the $1850 area again.

Gold News

Shiba Inu hits point of max pain, targets $0.000035

A brief technical and on-chain analysis on Shiba Inu price. FXStreet's analysts evaluate why SHIB could have bottomed out. 

Read more

Activision Blizzard dips lower ahead of Microsoft earnings call

Activision Blizzard could see its games thrust into the mainstream spotlight. Microsoft is set to release its FY2022 Q2 earnings on Tuesday after the close.

Read more