Gold Price Forecast: XAU/USD bears need a break of current daily lows


  • Gold bears are licking their lips as p[rice is technically coiled and biased lower.
  • A break of resistance opens risk of higher highs. 

Gold dropped from a high of $1,967 on Friday's US session and cleaned up the prior session's length, creating a fresh low of the day down at $1,953.32.

The focus has been on the Federal Reserve which issued a hawkish outlook for interest rates on Wednesday even as it ended its two-day meeting without hiking rates. The Fed forecast 50 basis points of additional increases prior to year-end. 

''It’s likely the Fed will need to see softening in the labour market to be confident that inflation is sustainably on its way down. Little guidance was offered for upcoming meetings, with Fed Chair Powell noting decisions will be made meeting to meeting. We continue to expect a 25bp hike in July,'' analysts at ANZ Bank argued. 

Meanwhile, the dollar rose early following three losing sessions. Bond yields were also higher, with the US two-year note last seen paying 4.733%, up 8.2 basis points and the 10-year note up 4.9 basis points to 3.772%. DXY traded 0.13% higher form a low of 102.006 to a high of 102.427.

'' As trend signals improve, CTA trend followers have already begun adding to their length in silver, where current prices could spark a buying program totaling +6% of this cohort's max size. In gold markets, the bar for algo buying activity is also razor-thin. Prices need only break the $1980/oz mark to spark the first marginal buying program, and the risk for subsequent buying flows is elevated above the $2000/oz range,'' analysts at TD Securities argued. 

Gold technical analysis

The 15min chart shows a number of levels to the downside to break while the daily offers a bearish bias while below trendline resistance and a break out of the channel:

With that being said, there will be prospects of a move higher if bulls stay committed and break trendline resistance. 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

GBP/USD consolidates above 1.2700 mark as traders await BoE policy update

GBP/USD consolidates above 1.2700 mark as traders await BoE policy update

GBP/USD ticks lower on Thursday and snaps a three-day winning streak to the weekly top. The USD draws support from rebounding US bond yields and exerts pressure on the major. The downtick lacks follow-through as traders look to the BoE before placing directional bets.

GBP/USD News

EUR/USD escapes Wednesday’s holiday volatility trap, set for wait to meaningful data

EUR/USD escapes Wednesday’s holiday volatility trap, set for wait to meaningful data

EUR/USD cycled on Wednesday with US markets out for a midweek holiday, and the Fiber heads into the back half of the trading week with mid-tier data on the offering, leaving investors to look ahead to Friday’s PMI activity figures for meaningful data releases to drive sentiment in either direction.

EUR/USD News

Gold: Will XAU/USD buyers recapture key resistance near $2.340?

Gold: Will XAU/USD buyers recapture key resistance near $2.340?

Gold price regains upside traction early Thursday after the Juneteenth holiday lull. The US Dollar pauses its decline as Treasury bond yields edge higher amid risk aversion. The daily RSI gradually moves above the midline, supporting the Gold price upside.

Gold News

Bitcoin price continues to plummet as whale activities deepen

Bitcoin price continues to plummet as whale activities deepen

Bitcoin's price fell below $65,000 on Wednesday following Increased whale activities that may be sell orders. Meanwhile, hedge funds have experienced a drag in their Bitcoin exposure, which may be fueled by consistent outflows among Bitcoin ETFs.

Read more

Will the BoE signal that rate cuts are looming?

Will the BoE signal that rate cuts are looming?

At its latest gathering, the Bank of England appeared dovish enough to encourage market participants to assign a decent chance for a first quarter-point rate cut in June, but that didn’t last for long as the hotter-than-expected inflation data for April prompted investors to take their summer rate cut bets off the table.

Read more

Forex MAJORS

Cryptocurrencies

Signatures