Gold Price Forecast: XAUUSD to extend the recovery on a close above 200-DMA at $1,842

Gold Price has entered a phase of consolidation so far this Thursday. Where is XAUUSD headed next? As FXStreet’s Dhwani Mehta notes, bulls face exhaustion at the 200-Daily Moving Average (DMA) around $1,842.

Sustained move below $1,820 to revive selling interests

“If the sentiment around the yields continues to remain undermined, in the Fed’s aftermath, it could also keep the dollar broadly under pressure. Risk sentiment, however, is weakening and could likely revive the haven demand for the greenback, which in turn, may extend the retreat in gold.”

“The daily chart shows that the rebound in gold price remains capped below the critical horizontal 200-DMA at $1,842. Bulls need acceptance above the latter on a daily closing basis to extend the recovery moment. The next stop for bulls is seen at the mildly bullish 21 DMA at $1,847. Further up, the $1,850 psychological level will be challenged.”

“A sustained move below the $1,820 round figure will revive selling interests, calling for a towards Monday’s low of $1,810. Strong support appears near $1,807-$1,805, which will be the level to beat for gold bears.”