Gold Price Forecast: XAU/USD testing support at $1,800 after rejection at $1,830

Gold retreats from $1,835 to test support at the $1,800 area.
A moderate risk appetite is weighing on demand for the precious metal.
XAU/USD, approaching the apex of an ascending triangle pattern.

Guillermo Alcala FXStreet

Gold futures are testing support at the $1,800 mark on Wednesday’s European session, after pulling back from Tuesday’s high at $1,833. Bullion prices have been treading water above $1,825 for the last two weeks, following a 12% rally from mid-November lows near $1,600.

Gold loses ground amid a moderate risk appetite

The precious metal has been trading lower on Tuesday, giving away gains after a spike high to $1,835 seen on Tuesday. The moderately positive market mood, triggered by news that China is scrapping quarantine for inbound travelers has lifted the market mood in an otherwise quiet post-Christmas market.

Furthermore, the US Dollar remains on the back foot, with the Dollar Index trading 0.2% lower on daily charts and moving right above the 104.00 level, following a moderately positive opening, which pushed the DXY to session highs at 104.35.

XAU/USD moving in an ascending triangle pattern

From a technical perspective, the daily chart shows the pair approaching the apex of an ascending triangle pattern, limited by a resistance area at $1,825, and trendline support from late-November lows, now around $1,795.

With the MACD indicator in negative territory, a confirmation below the mentioned $1,795 would negate the uptrend and boost sellers' confidence to push the pair towards $1,765/75, the December 6 and 15 lows and the November 23 low at $1720.

On the contrary, a run-up above the $1,825/35 resistance area would confirm the bullish pattern and set the pair aiming to June high at $1,880 before the $1,900 psychological level.

XAU/USD daily chart

Technical levels to watch

XAU/USD

Overview
Today last price	1806.07
Today Daily Change	-6.76
Today Daily Change %	-0.37
Today daily open	1812.83

Trends
Daily SMA20	1793.3
Daily SMA50	1739.29
Daily SMA100	1722.43
Daily SMA200	1782.26

Levels
Previous Daily High	1833.38
Previous Daily Low	1800.46
Previous Weekly High	1823.84
Previous Weekly Low	1783.84
Previous Monthly High	1786.55
Previous Monthly Low	1616.69
Daily Fibonacci 38.2%	1820.8
Daily Fibonacci 61.8%	1813.04
Daily Pivot Point S1	1797.73
Daily Pivot Point S2	1782.64
Daily Pivot Point S3	1764.81
Daily Pivot Point R1	1830.65
Daily Pivot Point R2	1848.48
Daily Pivot Point R3	1863.57

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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