Gold Price Forecast: XAU/USD to challenge key resistance at $1,830

Gold seems to have gone into a consolidation phase around $1,820. As FXStreet’s Eren Sengezer notes, bulls are set to take action with a break above $1,830.

XAU/USD to hold above key support levels that align near $1,800

“In case the 10-year US T-bond yield falls below 1.7% and stays there, the dollar could face renewed selling pressure and allow gold to push higher. On the flip side, another attempt at 1.8% resistance is likely to weigh on XAU/USD.”

“Key resistance area seems to have formed at $1,830, where the Fibonacci 23.6% retracement of the uptrend that started in October and ended in mid-November is located. With a daily close above that hurdle, XAU/USD could target $1,850 (static level) ahead of $1,870 (December highs, static level).”

“On the flip side, $1,800 (200-day SMA, Fibonacci 50% retracement) aligns as key support. If gold breaks below that level and starts using it as resistance, additional losses toward $1,790 (100-day SMA) and $1,780 (Fibonacci 61.8% retracement) could be witnessed.”