Gold Price Forecast: Upside risks remain intact for XAU/USD
Gold extends the previous drop following rejection at the $1810 200-Daily Moving Average (DMA). However, the upside appears more likely for XAU/USD as the yellow metal awaits US Durable Goods Orders, FXStreet’s Dhwani Mehta briefs.
Disappointing US Durable Goods Orders to cheer gold bulls
“Investors turn cautious ahead of the US Durable Goods Orders, which are expected to drop 0.3% in July vs. +0.9% seen previously. Disappointing data could further cool off the Fed’s tapering expectations, coming to the rescue of gold price.”
“The sentiment on Wall Street and US dollar price action will continue to lead the way for gold amid US stimulus talks and ahead of the all-important Fed’s Jackson Hole Symposium, starting this Thursday.”
“Acceptance above the strong resistance at $1810 could likely unleash additional gains towards the $1820 round figure. The buyers will then target the August highs of $1832.”
“If the downside pressure accelerates, below a break of the 50-DMA at $1791 cushion, then the horizontal 21-DMA at $1787 could challenge the bearish commitments. Monday’s low of $1777 will be back in play should the bears flex their muscles.”
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
