Gold price is looking to extend post-Fed decline, although the bears lack follow-through amid worsening market mood. In the opinion of FXStreet’s Dhwani Mehta, XAU/USD is set to remain volatile within range amid hawkish Fed and Evergrande crisis.
See – Gold Price Forecast: XAU/USD needs to close above $1834 to extend its recovery – Commerzbank
The volatile trading is likely to continue
“China Evergrande story will continue to remain the main market driver, with the Fed’s hawkish stance seen playing a second fiddle. Should the risk-aversion deepen on the re-emergence of Evergrande fears, XAU/USD could likely see the extension of the rebound in gold price.”
“A breach of the rising trendline support, connecting the September 8 and 20 lows, at $1748 would expose the six-week lows of $1742.”
“Daily closing above the critical $1793 barrier is needed to unleash the recovery gains towards the mildly bearish 200-DMA at $1806. The next relevant resistance is aligned at the horizontal 100-DMA of $1815.”
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