Gold Price Forecast: XAU/USD marks a brief pause before the next leg down

Gold is trading flat below the critical $1,792 hurdle, awaiting the US weekly Jobless Claims for fresh incentives. As FXStreet’s Haresh Menghani notes, the corrective slide from a multi-month high might still be far from over.

Bearish consolidation phase

“Traders will take cues from the release of the US Weekly Initial Jobless Claims data. Apart from this, the US bond yields, the broader market risk sentiment and the USD price dynamics will also be looked upon for some short-term trading opportunities.”

“Traders might still wait for some follow-through selling below the $1,762 area before positioning for any further depreciating move. On the way down, the $1,778-77 region might act as intermediate support ahead of the $1,772-70 zone.”

“Bulls are likely to wait for a sustained strength beyond the 200-DMA, which coincides with 100-day SMA around $1,792, before placing fresh bets. A convincing breakthrough this confluence hurdle should push XAU/USD beyond the $1,800 mark, towards the next relevant resistance near the $1,810-15 supply zone.”