Gold Price Forecast: XAUUSD extends slump to fresh weekly lows

Valeria Bednarik FXStreet

XAUUSD Current price: $1,84

US Treasury yields ticked higher amid inflation-related concerns.
The EU announced the sixth round of sanctions on Russia, pushing oil prices higher.
XAUUSD gains bearish traction in the near term, pressuring the bottom of its recent range.

XAUUSD fell to $1839.52 a troy ounce, now trading a couple of bucks above that level. The bright metal eased through the first half of the day amid renewed dollar strength following a holiday in the US. Gold remained under pressure despite the greenback losing its shine in US trading hours and giving up most of its early gains across the FX board.

Asian and European equities closed in the red as investors weighed soaring EU inflation and higher crude oil prices, the latter a result of a new package of sanctions on Russia, which implies immediately cutting 75% of oil imports from the country. Wall Street followed the lead, although US stocks managed to bounce off their intraday lows, putting some pressure on the dollar. US Treasury yields, in the meantime, hedged higher. The yield on the 10-year note is now around 2.84%, up from a daily open of 2.81%.

Gold Price short-term technical outlook

XAUUSD trades near the lower end of its latest range. The daily chart shows it bottomed at around a flat 200 SMA while breaking below a mildly bearish 20 SMA. Furthermore, technical indicators in the mentioned time frame have turned south, with the Momentum still within neutral levels but the RSI already at 43, hinting at increased selling interest.

Gold Price is bearish according to the 4-hour chart, as the metal trades below its 20 and 200 SMAs, while the price is currently piercing a bearish 100 SMA. At the same time, technical indicators head firmly lower within negative levels, supporting another leg south on a break below $1,839.30, the immediate support level.

Support levels: 1,839.30 1,826.30 1,814.70

Resistance levels: 1,852.40 1,864.00 1,871.45

View Live Chart for the XAU/USD

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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.

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