Gold Price Forecast: XAU/USD hits daily lows under $1,800
- A stronger US Dollar and higher US yields sent gold prices below $1,800.
- Next support is a short-term uptrend line around $1,795.
- US stocks turn negative, adding support to the Dollar.
Gold prices extended losses during the American session and printed a fresh daily low at $1,797. Currently, XAU/USD is hovering around $1,800 with a bearish bias.
A slide back under $1,800 would make gold vulnerable to a decline to test an uptrend line around $1,795. A break below could trigger more losses, to the $1,785 zone. Below the next support is located at $1,773 (Dec 15 & 16 low).
On the upside, Gold faces immediate resistance at $1,805. A break above $1,810 would improve the short-term outlook for the yellow metal. The critical level continues to be $1,820: a consolidation above would add a new support for a test of $1,830.
Dollar strengthens
The slide in Gold took place as equity prices in Wall Street turned negative and amid a rebound in US yields to fresh daily highs. The context weighed on XAU/USD. The US Dollar Index rose from the lowest level in almost a week at 103.84 to 104.45, the strongest since Friday.
Silver is falling by 1.80% and crude oil tumbles 2%. The Dow Jones is losing 0.53% and the Nasdaq 0.95%.
XAU/USD 4-hour chart
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Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
