Gold Price Analysis: XAU/USD to suffer additional losses with a daily close below $1,800
Gold (XAU/USD) struggled to make a decisive move in either direction last week. The near-term technical outlook suggests that sellers remain in control with the $1,800 support under threat, FXStreet’s Eren Sengezer reports.
Key quotes
“On Tuesday, the ZEW Survey - Economic Sentiment reports for the euro area and Germany will be watched closely by investors alongside the fourth-quarter Gross Domestic Product (GDP) figures for the eurozone. If these data point out to further weakness in the euro area economy, the greenback could start attracting investors and weigh on XAU/USD.”
“On Wednesday, January Retail Sales data will be featured in the US economic docket. The market consensus points out to a 0.7% increase following December’s 0.7% contraction. A better-than-expected print could help the USD outperform its rivals. Later in the day, the FOMC will release the minutes of its February meeting.”
“On the downside, $1,800 (psychological level) could be seen as the first support. A daily close below that level could open the door for additional losses toward $1,785 (Feb. 4 low) ahead of $1,765 (Nov. 30 low/starting point of December rally).”
“The initial resistance aligns at $1,845 (Fibonacci 61.8% retracement of the latest uptrend/20-day SMA). Even if gold manages to clear that hurdle, buyers could remain hesitant to return unless XAU/USD breaks above $1,855 (200-day SMA). Finally, the 100-day SMA around $1,870 is likely to act as the next dynamic resistance.”
Author
FXStreet Team
FXStreet
