XAU/USD is licking its wounds around $1,760 after dipping under $1,750. FXStreet’s Haresh Menghani notes that bears seize control as focus shifts to the FOMC meeting.
See – Gold Price Forecast: Decline in XAU/USD is unlikely to morph into a rout – TDS
Any recovery move might be seen as a selling opportunity near the $1,772-74 region
“Market participants now look forward to the release of the Prelim Michigan US Consumer Sentiment Index. This, along with the US bond yields, might influence the USD price dynamics. Apart from this, the broader market risk sentiment might produce some trading opportunities around gold as the focus now shifts to next week's crucial FOMC meeting.”
“Some follow-through selling back below the $1,750 level will reaffirm the negative outlook and turn the XAU/USD vulnerable. The next relevant support is pegged near the $1,729-28 area before the commodity eventually drops back to challenge the $1,700 round figure.”
“Any attempted recovery move might now be seen as a selling opportunity near the $1,772-74 region. This, in turn, should cap the upside for XAU/USD near the $1,780 zone, which should now act as a strong barrier. A sustained move beyond might trigger a short-covering move and push gold back above the key $1,800 mark, towards the $1,808-10 area (200-DMA).”
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