Gold Price Forecast: XAU/USD to resume its downtrend and fall below $1,700 – ANZ

FXStreet Insights Team FXStreet

Gold price rebounded strongly from its key support of $1,620. However, strategists at ANZ Bank expect XAU/USD to fall below $1,700 again.

A short-lived price rise

“Prices settling above the $1,800 resistance will be crucial to confirm a bullish trend in Gold. With the Fed expected to hike in December by 50 bps and inflation staying well above the target range, we believe it would be difficult for XAU/USD to break this resistance before the end of this year.”

“We expect Gold to take support at $1,700, while prices could still test the downside of $1,620, which is a key support level in the near-term. A break of $1,620 could potentially open the door for prices to fall below $1,600.”

Author

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.

EUR/USD struggles to regain momentum in the low1.1600s

EUR/USD is giving some signs of life in the aftermath of two severe days of losses on Wednesday, reclaiming the 1.1600 hurdle and above on the back of the resurgence of a mild selling bias around the US Dollar. Moving forward, the usual US weekly Claims will take centre stage on Thursday ahead of Friday’s crucial NFP data.

GBP/USD appears bid around 1.3370

GBP/USD reverses part of its recent multi-day decline, gathering some balance and managing to reach the 1.3400 region, where some initial resistance seems to have turned up. Cable’s uptick comes in response to some loss of momentum in the Greenback despite the geopolitical scenario remaining fragile.

Gold recovers modestly despite intensifying Middle East crisis

Gold keeps its daily gains well in place, although a break above the $5,200 mark per troy ounce still remains elusive on Wednesday. The yellow metal’s rebound comes in response to the persistent flight-to-safety amid intense geopolitical tensions in the Middle East and the bearish performance of the US Dollar.