Gold Price Forecast: XAU/USD revers sharply from $1810 and tumbles toward $1790
- Metals are unable to benefit from a sharp decline of the US dollar across the board.
- XAU/USD faces resistance at $1810 and fails to hold above $1800.
Gold dropped almost $20 during the last hour and turned negative for the day. XAU/USD jumped to $1810, reaching the highest level since last Friday and then it changed its direction falling toward $1790. It bottomed at $1792, and it is hovering around $1795, still looking for a direction.
The short-term trend still points to the upside in gold, but gains were capped again at $1810 and it is also showing difficulties holding above $1800, pointing to a lack of strength is moving higher. A key support is seen around $1785, an uptrend line that if broken could trigger more losses. On the upside, the key level is $1810.
The reversal in gold took place even amid a slide of the greenback across the board. The DXY trades at 93.39, down 0.50%, at the lowest level in a month. At the same time, the 10-year US yield is modestly higher.
Economic data from the US came in mixed. The preliminary reading of Q3 GDP showed an expansion at a 2% annualized rate, below the 2.7% expected. On the positive, jobless claims dropped more than expected to the lowest level since March 2020. The numbers are relevant ahead of next’s week FOMC meeting.
Technical levels
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.
