Gold Price Forecast: XAU/USD bears are hopeful, downside consolidative mode is underway

Gold is trading subdued at lower levels on Bank of England’s (BoE) Super Thursday, clinging onto key support at $1811. As FXStreet’s Dhwani Mehta notes, risks appear skewed in favor of XAU/USD bears.

See – Gold Price Forecast: Four factors support a XAU/USD leg higher – ANZ

Gold’s daily setup suggests choppy to range-bound trading

“Immediate focus now remains on the BoE monetary policy announcements, with the central bank likely to stand pat but may offer hints towards a potential tapering of its bond-buying programme amid concerns over rising inflation. Any hawkish tilt from the BoE could dent the sentiment on the global stocks, lifting the dollar further, in turn, negatively impacting gold.” 

“Also of note remains the US Jobless Claims and Fed official Waller’s speech for fresh incentives on gold price action. However, Friday’s US NFP release will set the tone for the market and gold’s direction.”

“A sustained break below the 21-DMA support at $1811 could expose the ascending 100-DMA at $1804 and the psychological $1800 mark. Further south, the range lows around $1790 could be put at risk if the selling pressure intensifies.”

“The 200-DMA at $1819 continues to challenge the bullish commitments. Recapturing this level convincingly is likely to prompt a retest of the bearish 50-DMA at $1822. Buyers will seek fresh entries to challenge Wednesday’s high en-route the $1840 round number.”