Gold Price Forecast: Unbeatable dollar set to keep appreciating
2 min read
XAUUSD Current price: $1,862.83
- Speculative interest is focused on inflation and its potential effects on economic growth.
- Government bond yields soared to multi-year highs but eased after Wall Street open.
- XAUUSD has room to test the $1,800 figure, particularly on a break below $1,850.35.
Much of the market’s direction was determined by government bond yields, which jumped to multi-year highs on Monday. The yield on the US 10-year Treasury note hit 3.203%, now down to 3.09%, while that on the German 10-year bund hit 1.189%, currently at around 1.10%.
Gold Prices short-term technical outlook
From a technical point of view, XAUUSD is at risk of falling further. The daily chart shows that a mildly bullish 100 SMA continues to provide dynamic resistance, while the 20 SMA heads firmly lower far above it. Technical indicators, in the meantime, keep consolidating near oversold readings without signs of a potential recovery. The bearish case will likely persist as long as the price holds below $1,885.10, the 23.6% retracement of the April/May slump.
The 4-hour chart shows that the pair is developing below all of its moving averages, as technical indicators hold within negative levels without clear directional strength. Gold bottomed early in May at $1,850.34 a troy ounce, the level to break to confirm another leg south towards the $1,800 figure.
Support levels: 1,850.35
Resistance levels: 1,896.00
