XAU/USD to have a hard time reclaiming $1,800


Gold keeps the red for the third day in the row amid quiet markets. Year-end flows are set to keep XAU/USD choppy around $1,800, according to FXStreet’s Dhwani Mehta.

Gold’s technical setup paints a bearish picture on the 4H chart

“Gold is extending the previous bearish momentum, as the Treasury yields hold the recent advance. Meanwhile, the market mood remains cautious, underpinning the dollar’s safe-haven demand at gold’s expense.”

“Gold price is extending the recent losses, with bears looking to retest the ascending 100-SMA support at $1,792. The next downside target is seen at the horizontal trendline support at $1,785.”

“On the upside, bulls need to recapture the 50 and 200-SMAs confluence area at $1,802 and $1,805 respectively, above which the 21-SMA at $1,807 will come into play. Recapturing the latter is critical to resuming the uptrend towards the monthly highs of $1,820. Ahead of that level, the previous stubborn resistance at $1,814 will challenge the bulls’ commitments once again.”

See – Gold Price Forecast: XAU/USD at risk of plunging below $1,500 – Credit Suisse