Gold Price Analysis: Technical chart suggests a make-or-break moment for XAU/USD

FXStreet Team FXStreet

Gold (XAU/USD) remains under heavy selling pressure so far this Tuesday’s trading, as a four-day losing streak extends amid relentless demand for the US dollar across its main competitors. The yellow metal is at a critical juncture as FXStreet’s Dhwani Mehta notes.

See – Gold Price Analysis: XAU/USD’s outlook supported by higher inflation and a weaker USD – ANZ

Key quotes

“The price of gold will remain at the mercy of the US dollar dynamics while the price action in the US Treasury yields will be also closely followed amid a lack of relevant US economic data. Markets could also resort to profit-taking after the recent sell-off.”

“Gold’s 4-hour chart shows that the price is on the verge of confirming a falling channel breakdown if it closes the candle below the trendline support at $1712. Should the pattern get validated, a drop towards the June 2020 lows at $1671 cannot be ruled out.”

“If the XAU bulls manage to defend the critical support, a rebound towards the bearish 21-simple moving average (SMA) at $1755 could be in the offing.”

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FXStreet Team

FXStreet

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