Gold Price Forecast: XAU/USD keeps $1725 in sight while below critical $1762 resistance

FXStreet Insights Team FXStreet

Currently, XAU/USD is fluctuating in a tight channel above $1,750. In the view of FXStreet’s Dhwani Mehta, gold remains exposed to downside risks ahead of a big week.

See – Gold Price Forecast: XAU/USD to extend its declining trend due to three reasons – ABN Amro

The bearish grip on gold price remains intact

“The Fed tapering speculations and energy crisis will continue to dominate the market sentiment amid holiday-thinned light trading conditions, as the US and Canada are closed in observance of their respective national holiday. Investors await Wednesday’s US inflation data and the FOMC minutes for a decisive move in gold price.”

“Gold failed to find acceptance above the short-term critical resistance of the 21-Daily Moving Average (DMA) at $1762 on Friday, leaving the downside risks exposed.”

“On a daily closing below the $1750-$1745 demand area, the multi-week troughs near $1720 could be on the gold sellers’ radars.”

“A firm break above the 21-DMA barrier is critical to initiate a convincing uptrend in XAU/USD. The downward-sloping 50-DMA at $1778 will be back in play, above which a test of the $1800 round number will be inevitable.”

Author

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.