Gold Price News and Forecast: XAU/USD eyes a daily close below 100-DMA

FXStreet Team FXStreet

Gold Price Forecast: Bears eye a daily close below 100-DMA amid dollar’s upsurge

Gold (XAU/USD) finally breached the August low of $1863 on Wednesday, as the sell-off continued amid persistent US dollar strength against its higher-yielding rivals. The yellow shed another 2% to reach the lowest levels in six weeks at $1856 before settling the day at $1863. Concerns over the economic recovery in the US and Europe resurfaced, amid intensifying second-wave of the coronavirus, which further fuelled the dollar’s demand as a safe-haven.

Fed's gospel choir off-key with markets

Gold's close below its August low at $1863.00 an ounce is significant, and it is now testing its overnight lows at $1855.00 an ounce. The 100-DMA nearby at $1843.00 an ounce should provide the same initial support as it did with silver. Both metals are now entering oversold territory on their technical indicators as well, also modestly supportive.

160.80: Japanese Yen remains close to nearly two-year lows

USD/JPY inches lower after four days of gains, trading around 160.60 during the Asian hours. The USD/JPY pair surged to 160.80 the previous day, marking its highest level since July 2024 and significantly heightening speculation that Japanese authorities could soon intervene to support the struggling Yen.

Australian Dollar remains in positive territory after paring recent gains

AUD/USD pares its daily gains, remaining in the positive territory and trading around 0.7010 during the European hours. The pair appreciated as the Australian Dollar received support from prevailing hawkish sentiment surrounding the Reserve Bank of Australia’s policy outlook.

Gold drops to daily lows near $4,200

Gold struggles to attract buyers on Thursday, trading closer to the $4,200 mark per troy ounce. The yellow metal adds to Wednesday’s pullback and slips back to multi-day lows in response to the stronger US Dollar following the Fed’s hawkish hold on Wednesday.

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Cryptocurrency prices are broadly moderating downwards on Thursday, as market participants assess the impact of the Federal Reserve’s (Fed) hawkish monetary policy stance.

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