• Gold price keeps reversal from the key hurdle, drops back towards yearly low.
  • Risk-aversion, hawkish central banks joined firmer yields to weigh on XAU/USD.
  • US Q2 GDP eyed for intraday clues, recession, Russia and central banks are in focus.
  • Bears can keep reins unless crossing $1,660 resistance confluence.

Gold price (XAU/USD) braces for the fresh yearly low, snapping a two-day uptrend, as the US dollar bulls return to the table after a brief absence the previous day. Fears of global recession and hawkish central bank actions are the major drivers that recently propelled the greenback. On the same line could be the upbeat US trade data and doubts over the Bank of England (BOE) and the People’s Bank of China (PBOC) to tame the economic slowdown woes. It’s worth noting that the chatters surrounding heavy rate hikes from the European Central Bank (ECB) joined the BOE’s surprise bond action to trigger the metal’s biggest daily jump in six months the previous day.

Given the sour sentiment and the XAU/USD pullback from the key hurdles, the bears are likely to keep the reins. However, a close watch over the aforementioned risk catalysts and the final readings of the US Q2 Gross Domestic Product (GDP) appears necessary for clear directions.

Also read: Gold Price Forecast: XAU/USD struggles to capitalize on corrective bounce amid rate-hike jitters

Gold Price: Key levels to watch

The Technical Confluence Detector shows that the gold price retreats from multiple strong resistances, suggesting a smooth run towards the south.

That said, a convergence of the previous weekly low and the SMA 100 on the hourly play, near $1,640, appears the immediate support to watch during the quote’s further weakness.

Following that, it can quickly decline towards the joint of the Pivot Point one week S1, close to $1,627.

During the XAU/USD downside past $1,627, the $1,600 appears the favorite among the gold bears.

Alternatively, $1,646 acts as the wall of resistance comprising Pivot Point one month S2, Fibonacci 38.2% on one day and 5-DMA.

If the metal prices cross the $1,646 hurdle, a run-up towards $1,653 can’t be ruled out. However, a convergence of 5-HMA, middle Bollinger on one-hour and Fibonacci 23.6% on one day and one week could challenge the buyers afterward.

It’s worth observing that the bullion’s run-up beyond $1,653 could aim for the last defense of bears, namely $1,660 that comprises the 10-DMA and Fibonacci 38.2% on one week.

Here is how it looks on the tool

fxsoriginal

About Technical Confluences Detector

The TCD (Technical Confluences Detector) is a tool to locate and point out those price levels where there is a congestion of indicators, moving averages, Fibonacci levels, Pivot Points, etc.  If you are a short-term trader, you will find entry points for counter-trend strategies and hunt a few points at a time. If you are a medium-to-long-term trader, this tool will allow you to know in advance the price levels where a medium-to-long-term trend may stop and rest, where to unwind positions, or where to increase your position size.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

AUD/USD accelerates to near 0.6820 ahead of Reserve Bank of Australia policy

AUD/USD accelerates to near 0.6820 ahead of Reserve Bank of Australia policy

The AUD/USD pair has witnessed a sharp recovery in the Tokyo session after a corrective move below 0.6780. The Aussie asset has accelerated to near 0.6820 and is expected to extend its gains toward the previous week’s high around 0.6845 amid the risk appetite profile.

AUDUSD News

EUR/USD aims for 1.0550 despite upbeat US NFP data, Eurozone Retail Sales eyed

EUR/USD aims for 1.0550 despite upbeat US NFP data, Eurozone Retail Sales eyed

The EUR/USD pair is hovering around a fresh five-month high at 1.0545 in the early Asian session. The major currency pair is expected to extend its rally to near 1.0550 ahead amid an upbeat market mood.

EUR/USD News

Gold struggles around $1,800 ahead of ISM Services PMI data

Gold struggles around $1,800 ahead of ISM Services PMI data

Gold price is facing immense pressure in conquering the round-level resistance of $1,800.00 in the early Tokyo session. The precious metal is highly expected to display more gains ahead and may extend towards a fresh three-month high at $1,824.63.

Gold News

AVAX: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX: Traders bet should be on Avalanche bulls triggering a 15% rally

AVAX price has breached an inverse head-and-shoulders setup, hinting at a 13% upswing. AVAX price has broken out of a critical hurdle and pattern, signaling the start of a quick run-up. AVAX price action created an inverse head-and-shoulder setup.

Read more

The Yen, Payrolls, and the Oil price

The Yen, Payrolls, and the Oil price

US stocks wrapped their second straight week of gains, even if stocks slipped on Friday on the back of better-than-expected US Payrolls data.We have been amazed by the resilience in risky assets of late. This year has seen some incredible macro themes.

Read more

Forex MAJORS

Cryptocurrencies

Signatures