Gold Price Forecast: XAU/USD's technicals point to more downside

FXStreet Insights Team FXStreet

In Tuesday’s trading so far, gold price is holding the lower ground, consolidating within Monday’s trading range. In the view of FXStreet’s Dhwani Mehta, XAU/USD remains vulnerable amid firmer US dollar and bearish technicals.

See – Gold Price Forecast: Rising US real yields and a strengthening USD to weigh on XAU/USD – Credit Suisse

Gold price bears the brunt of the strong US dollar amid risk-aversion

“The US dollar clings to the recent gains, gaining some support from a minor uptick in the Treasury yields. Markets continue to remain wary amid Delta strain concerns and mixed messages from the Fed officials.”

“If risk aversion deepens heading into the US CB Consumer Confidence release, the greenback could see increased buying interest at gold’s expense.”

“On the four-hour chart, gold price charted a symmetrical triangle breakdown in the US last session, opening floors for a test of the previous month’s low of $1766. Should the May low give way, the two-month low of $1761 could be retested.”

“If gold bulls decisively take out strong resistance at $1779-$1780, a run towards the $1790-$1795 supply zone cannot be ruled. The buyers will then look to challenge the $1800 psychological mark.”

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.

AUD/USD edges higher as hot CPI inflation and hawkish RBA lift rate hike bets

The AUD/USD pair gathers strength to near 0.7035 during the Asian trading hours on Friday. The Australian Dollar edges higher against the US Dollar as hotter Australian CPI inflation data has bolstered expectations of Reserve Bank of Australia rate hikes.

USD/JPY meets support near 157.00

USD/JPY retreats for the third consecutive day on Friday, revisiting the 157.00 region before attempting some recovery as investors continue to assess the latest BoJ meeting, where the central bank left rates unchanged, as widely anticipated.

Gold sinks to fresh yearly lows despite risk-off mood as Fed rate hike bets weigh

Gold slips to fresh year-to-date lows on Friday. The metal struggles despite a risk-off mood across markets, as expectations of further Federal Reserve (Fed) interest rate hikes continue to dominate price action, leaving Gold on track to end the month in negative territory.

Ripple Price Forecast: XRP bulls defend $1.20 as sell-side pressure triggers liquidations

Ripple (XRP) trades around $1.25 on Friday, rising from a short-term support level established at $1.20. This minor upward correction follows a sharp sell-off, triggered amid reports of a hack attack on the Binance exchange that impacted approximately $6.3 billion. The attack drove the broader crypto market on edge, as Binance suspended both deposits and withdrawals to contain the situation.

BoJ recap: A pause for now... but Japan has entered a new inflation phase

The Bank of Japan left its short-term policy rate unchanged at 1.25% but delivered a distinctly hawkish message on the risk of an inflation overshoot. The decision passed by 8-1, with board member Takata dissenting in favour of an increase to 1.5%, while Governor Kazuo Ueda stressed that the Bank would continue adjusting policy as needed.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.