Gold Price Forecast: XAU/USD to challenge YTD low near $1,615 on failure to hold $1,642

FXStreet Insights Team FXStreet

Gold prices fell marginally amid a weakening US dollar despite a stronger-than-expected US inflation print. XAU/USD could retest year-to-date low near $1,615, FXStreet’s Haresh Menghani reports.

The path of least resistance for XAU/USD is to the downside

“The overnight failure near the $1,682-$1,684 supply zone suggests that the path of least resistance for the XAU/USD is to the downside. The outlook is reinforced by the fact that oscillators on daily/4-hour charts are holding in the negative territory.”

“A slide back towards the overnight swing low, around the $1,642 region, remains a distinct possibility. Some follow-through selling will expose the YTD low, around the $1,615 region touched in September. This is followed by the $1,600 round figure, which if broken decisively will be seen as a fresh trigger for bearish traders.”

“The $1,682-$1,684 region might continue to act as an immediate strong resistance ahead of the $1,700 mark. A sustained strength beyond the latter is needed to negate the near-term negative bias and set the stage for additional gains. Gold might then accelerate the momentum back towards retesting the monthly peak, around the $1,728-$1,730 zone.”

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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