Gold Price Forecast: XAU/USD Sellers push the price below $1,800, on broad US dollar strength

Gold trades at two-week lows, below $1,800.
XAU/USD daily close below the 200-DMA could accelerate the fall.
An ascending wedge in the 4-hour chart, its suggests next target could be at $1,750.

Christian Borjon Valencia FXStreet

The yellow metal is falling for the second day in a row and it is trading around $1,794.41, down 1.58%, at the time of writing.

XAU/USD Price Forecast: technical outlook

Daily chart

Gold is testing the 50-day moving average (DMA) at $1,797, a crucial level as a bounce/break could accelerate the price either way. A bounce will motivate bulls to push the price above $1,800 on their way to higher prices. The first supply area will be the confluence of the 100-DMA and the 200-DMA around the $1,809-11 range. A decisive break of this essential resistance could drive the price to the August 4 high at $1,831.77.

On the flip side, a daily close under the 50-DMA could exert downward pressure on the XAU/USD. The first demand zone will be the August 19 low at $1,774.21. Once cleared, the following key support areas will be June 29 low at $1,750.74 and August 10 low at $1,717.79.

The Relative Strength Index is at 47.42, aiming lower, supporting the downward bias.

4-hour chart

XAU/USD broke the bottom trendline of an ascending wedge, thus confirming its validity and the downward trend. The next support on the way down would be the August 19 swing low at $1,774.21. A decisive break of the latter could threaten the $1,750.00 area.

On the flip side, bulls need to reclaim the 100-SMA at $1,802.15 to regain control. If the price breaks above that level, the next resistance is the 50-SMA, currently at $1,814.26. Once that supply area is cleared, the following resistance would be at $1,831.81.

The Relative Strength Index is at 30.02 flattish, having bounced from oversold levels, still supporting a downward continuation.

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

GBP/USD faces daily resistance near 1.3650

GBP/USD resumes its decline, reversing Tuesday’s bullish attempt and failing once again to break above 1.3650. Cable’s decent pullback follows an acceptable advance in the Greenback as investors continue to assess latest US PCE and GDP data.

EUR/USD remains sidelined around 1.1670 post US-PCE

EUR/USD alternates gains with losses around 1.1670 on Wednesday. The pair’s retracement comes on the back of modest gains in the US Dollar in the wake of the release of July PCE data and another revision of Q2 GDP figures.

Gold surrenders some weekly gains; back toward $4,600

Gold now faces some renewed downside pressure and seems to challenge the key $4,600 mark per troy ounce on Tuesday. That said, the yellow metal’s correction comes after three daily upticks in a row, fading at the same time Tuesday’s move to fresh tops around $4,700.

Bitcoin recovery stalls near $80,000 as ETF inflows mount, whale demand strengthens

Bitcoin price is trading in the green on Wednesday, holding above $78,000 while struggling to extend its recovery above the $80,000 mark. Institutional demand is strengthening, with steady inflows and BlackRock’s tax-deferred Bitcoin-to-ETF swap volume reaching $5 billion.

Nvidia: How will the company perform as its switches from a chip maker to an AI finance house?

The main event for markets this week takes place this evening, after US markets close. Nvidia, the AI giant, will report results for last quarter. Another monster report is expected. Revenues could come in above $92bn, and earnings per share could come in at $2.09.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.