Gold Price Forecast: XAUUSD backs away from $1800 as US yields soar
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- Treasury bonds decline even after another reading below expectations of US inflation.
- Gold fails to rise above $1800 and correct lower.
- Immediate support is seen at $1785, followed by $1774.
The pair currently trades last at 1790.05.
The previous day high was 1807.93 while the previous day low was 1787.65. The daily 38.2% Fib levels comes at 1795.4, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1800.18, expected to provide resistance.
Gold turned negative for the day after a reversal from near $1800. XAUUSD peaked at $1799 during the American session and then turned to the downside falling toward $1785.
Data released on Thursday showed the Producer Price Index in the US dropped by 0.5% in July, and the annual rate fell to 9.8%, against expectations of a 0.2% monthly advance. On Wednesday, it was reported the Consumer Price Index was unchanged in July against expectations of a 0.2% gain. The decline in inflation weighed on the US dollar.
Market participants still expect the Federal Reserve to hike by at least 50 basis points at the September meeting. However, US yields are up even amid the probability of an inflation peak in the US. The US 10-year yield is up 1.90% at 2.83%, while the 2-year is at 3.20%, both at the highest level in almost a week.
The increase in US yields limited the upside in gold. XAU/USD’s inability of holding above 1800$, even after the recent US data, rises doubts about the rally. The immediate support is seen at $1785 followed by the weekly opening at $1774. If the yellow metal consolidates above $1800 more gains seem likely.
Technical Levels: Supports and Resistances
XAUUSD currently trading at 1790.05 at the time of writing. Pair opened at 1792.33 and is trading with a change of -0.13 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1790.05 |
| 1 | Today Daily Change | -2.28 |
| 2 | Today Daily Change % | -0.13 |
| 3 | Today daily open | 1792.33 |
The pair is trading above its 20 Daily moving average @ 1745.8, above its 50 Daily moving average @ 1785.7 , below its 100 Daily moving average @ 1840.8 and below its 200 Daily moving average @ 1841.95
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1745.80 |
| 1 | Daily SMA50 | 1785.70 |
| 2 | Daily SMA100 | 1840.80 |
| 3 | Daily SMA200 | 1841.95 |
The previous day high was 1807.93 while the previous day low was 1787.65. The daily 38.2% Fib levels comes at 1795.4, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1800.18, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 1784.01, 1775.69, 1763.73
- Pivot resistance is noted at 1804.29, 1816.25, 1824.57
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1807.93 |
| Previous Daily Low | 1787.65 |
| Previous Weekly High | 1794.97 |
| Previous Weekly Low | 1754.35 |
| Previous Monthly High | 1814.37 |
| Previous Monthly Low | 1680.91 |
| Daily Fibonacci 38.2% | 1795.40 |
| Daily Fibonacci 61.8% | 1800.18 |
| Daily Pivot Point S1 | 1784.01 |
| Daily Pivot Point S2 | 1775.69 |
| Daily Pivot Point S3 | 1763.73 |
| Daily Pivot Point R1 | 1804.29 |
| Daily Pivot Point R2 | 1816.25 |
| Daily Pivot Point R3 | 1824.57 |
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