Gold Price Forecast: XAU/USD's technical set-up supports prospects for further losses
Gold’s rebound is gaining momentum, as bulls recapture the $1780 mark. Nonetheless, XAU/USD remains vulnerable to retest monthly lows and slide further, FXStreet’s Haresh Menghani briefs.
Range-bound price action constitutes the formation of a rectangle
“There isn't any major market-moving economic data due for release from the US, suggesting that the commodity is more likely to extend its subdued range-bound price action on the first day of a new trading week.”
“Given the recent slump, the rectangle might still be categorized as a bearish consolidation phase and supports prospects for further weakness. The negative bias is reinforced by the lack of any buying interest around the commodity. Hence, a slide back towards retesting monthly swing lows, around the $1,761-60 region, en-route to the next major support near the $1,748-47 region, remains a distinct possibility.”
“The $1,795-$1,800 area now seems to have emerged as immediate strong resistance. A sustained move beyond might trigger a short-covering move towards the $1,815 region. Any further move up might still be seen as a selling opportunity and runs the risk of fizzling out rather quickly near the very important 200-day SMA, currently around the $1,833 region.”
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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.
