Gold snapped a six-day losing streak on Friday and closed around $1,780 but lost more than 2% on a weekly basis. XAU/USD could extend losses toward the $1,750 level, FXStreet’s Eren Sengezer reports.
“On Tuesday, the Conference Board’s Consumer Confidence Index from the US will be watched closely by market participants. As we have seen in the past couple of weeks, a positive reading could help the USD gather strength and force XAU/USD to remain on the back foot.”
“Friday’s Core Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred gauge of inflation, will be next week’s key data to watch. The market consensus points out to an annual increase of 1.4% and a higher-than-expected print could make it difficult for XAU/USD to gain traction.”
“On the upside, the descending trend line coming from early January is currently forming strong resistance around $1,800 psychological level. As long as this line remains intact, sellers will look to dominate gold's price action. The next technical hurdle is located at $1,820 (20-day SMA) ahead of $1,826 (static level).”
“The immediate support could be seen at $1,770. A daily close below that support is likely to open the door for additional losses toward $1,760 (multi-month lows) and $1,750 (former resistance from May/June 2020).”
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