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