Gold Price Forecast: XAUUSD bulls attempt to move in, stabalising near USD sunken lows

  • Concerns regarding the newest Covid-19 outbreak in China and geopolitics dampened the market mood.
  • Despite falling US Treasury yields, king dollar safe-haven flows weighed on Gold Prices.
  • Gold Price Forecast (XAUUSD): Remains tilted to the upside, but a break below $1890-$1900 to open the door for a test of the 200-DMA.

The Gold Price is higher by some 0.18% and has moved back to challenge the $1,900 round number in recent trade. The US dollar is bid and capping the yellow metal despite the risk-off sentiment in markets. The greenback as measured by the DXY was up for a fourth straight day on Tuesday, smashing through to the highest level since March 2020, and is now up nearly 7% on the year. 

A combination of risk-off themes are roiling markets this week, stemming from the Chinese lockdowns and negative implications for world trade at a time when NATO is on the brink of war with Russia. It is a 'sell-everything' day on Wall Street, with stocks in a sea of red. Meanwhile, data showed US Consumer Confidence edged lower in April. Additionally, the Atlanta Fed Gross Domestic Product nowcast estimate for the first quarter growth was revised sharply lower to 0.4% from 1.3% on April 19. The next update is on Wednesday, the final estimate before the Bureau of Economic Analysis releases its advance reading of Q1 GDP on Thursday. 

China’s coronavirus outbreak, geopolitics, and a firm US dollar keep Gold Price downward pressured

Worries around China’s coronavirus outbreak maintain investors’ unease. Lockdowns in Shanghai and news of the spread to some districts of Beijing threaten to spur another raft of inflation courtesy of supply-side disruptions. Meanwhile, the People’s Bank of China (PBoC) continues to implement stimuli to the Chinese economy in its attempt to contain an economic slowdown.

In the meantime, the Russo-Ukraine tussles have taken a backseat of late. However, expressions by the Russian Foreign Ministry Lavrov saying that the risks of a nuclear war are “serious,” summed up the already dampened market mood.

Gold Price Forecast (XAUUSD): Technical outlook

Gold Price bias is still tilted to the upside, but a break below $1890 would clear the way for a fall at least to the 200-day moving average (DMA) at $1832.75, though a test to $1800 is on the cards. Something worth noting is that the RSI is at 39.23, in bearish territory and with enough room to spare before reaching oversold territory if XAUUSD bears like to drag prices lower.

If that scenario plays out, the XAUUSD first support would be $1900. Break below would expose the aforementioned $1890 support, followed by the 100-DMA at 1875.32, and then the 200-DMA at $1832.75.


Today last price 1902.84
Today Daily Change 5.10
Today Daily Change % 0.27
Today daily open 1897.6
Daily SMA20 1941.93
Daily SMA50 1936.37
Daily SMA100 1872.57
Daily SMA200 1831.96
Previous Daily High 1934.44
Previous Daily Low 1891.56
Previous Weekly High 1998.43
Previous Weekly Low 1926.71
Previous Monthly High 2070.54
Previous Monthly Low 1890.21
Daily Fibonacci 38.2% 1907.94
Daily Fibonacci 61.8% 1918.06
Daily Pivot Point S1 1881.29
Daily Pivot Point S2 1864.99
Daily Pivot Point S3 1838.41
Daily Pivot Point R1 1924.17
Daily Pivot Point R2 1950.75
Daily Pivot Point R3 1967.05



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.


GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 


Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!