Gold Price Forecast: XAU/USD eyes sub-$1,800 zone on fresh risk-aversion – Confluence Detector

  • Gold prices remain pressured as fresh risk-off sentiment renews US dollar buying.
  • Bears cheer Friday’s downside break of key support as China’s data dump, covid news weigh on sentiment.
  • Key pivot points lure sellers ahead of January’s low, bulls need validation from $1,835.

Gold (XAU/USD) prices remain pressured around a three-month low, reversing the early Asian rebound, as the risk-off mood underpins the USD’s safe-haven demand. Also keeping the gold sellers hopeful is the clear downside break of an ascending trend line from August 2021, portrayed the previous day. 

Market sentiment sours after China reported downbeat figures for April month’s Retail Sales and Industrial Production, backed by fresh covid fears emanating from Shanghai and Beijing. Additionally challenging the previous risk-on were fears that Germany isn’t going to respect Hungary’s push for no total ban on Russia’s energy imports. Furthermore, news that the military actions in Donbas continue to accelerate underpin the risk-off mood, as well as favor the US dollar’s safe-haven demand.

Read: Gold, Chart of the Week: Bulls are moving in, but weekly levels are eyed

Gold Price: Key levels to watch

The Technical Confluences Detector shows that the Gold Price is eyeing a test of the Pivot Point 1 month S2 and Pivot Point 1 Day S2, surrounding $1,797.

Should the quote drops below $1,797, which is more likely considering Friday’s key trend line break, lows marked during January around $1,780 will be in focus.

It’s worth noting that the Bollinger Band Lower on 4H and 1D could offer immediate support around the $1,800 threshold.

On the contrary, SMA 5H and Middle Bollinger on 1H may test recovery moves around $1,815.

Following that, 23.6% Fibonacci retracement for one week, around $1,820, will test the upside momentum.

Even if the gold buyers manage to cross the $1,820 hurdle, a clear upside break of the $1,833-35 region, comprising 38.2% Fibonacci retracement on one week, as well as Middle Bollinger on 4H, becomes necessary to retake controls.

Here is how it looks on the tool


About Technical Confluences Detector

The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

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.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD flirts with 1.0600 amid risk rebound, ECB news

EUR/USD flirts with 1.0600 amid risk rebound, ECB news

EUR/USD is trading near 1.0600, extending the advance, as the safe-haven US dollar trips amid a positive shift in risk sentiment. The euro cheers the news that the ECB may unveil a new bond-buying scheme to cap yields/spreads in July. ECB-speak, US data awaited. 


GBP/USD bounces towards 1.2300 amid renewed USD selling

GBP/USD bounces towards 1.2300 amid renewed USD selling

GBP/USD is bouncing back towards 1.2300, capitalizing on the renewed selling in the US dollar across the board. The risk recovery is weighing on the dollar, despite the rebounding Treasury yields. Brexit and UK political woes remain a drag on the pound. US data eyed. 


Gold sticks to gains near $1,825, upside potential seems limited

Gold sticks to gains near $1,825, upside potential seems limited

Gold attracted some dip-buying on Tuesday and reversed a part of the overnight sharp retracement slide from the very important 200-day SMA. Gold held on to its modest gains through the early European session and was last seen trading above the $1,825 level.

Gold News

LUNA 2.0 price is primed for 60% rally

LUNA 2.0 price is primed for 60% rally

LUNA price breached the range it was trading in and crashed violently in June. However, buyers seem to be making a comeback, suggesting that a recovery rally is in effect.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!