Gold Price Forecast: XAUUSD to fall towards $1,800 on a break under key $1,838 support

This Thursday, gold is seeing fresh selling pressure. As FXstreet’s Dhwani Mehta notes, the key $1,838 support could be at risk ahead of US GDP.

Gold is teasing a downside break from a symmetrical triangle

“The GDP revision could be closely eyed amid looming recession risks in the US. The data could have a significant impact on the dollar valuations and, in turn, on the yellow metal.”

“If bears yield a break below the rising trendline support at $1,842 on a four-hourly candlestick closing basis, then it would confirm a triangle breakdown. The immediate downside target is seen at the rising 50-Simple Moving Average (SMA) at $1,838. A sustained move below the latter is needed for sellers to resume the renewed downside towards $1,800.”

“Strong resistance is placed at $1,856, which is the horizontal 21-SMA, above which the falling trendline hurdle at $1,863 will get tested. After the relentless surge, gold bulls could see a minor pullback from two-week highs, with the immediate support of the 21-DMA likely to be tested.”