Gold Price Forecast: XAU/USD hits fresh daily lows under $1,785
- Gold is moving with a bearish bias on Monday.
- Quiet day for financial markets ahead of US CPI, Fed, ECB and BoE.
- Daily close above $1,805 to open the doors to more gains.
On a quiet Monday ahead of key events, XAU/USD is falling by more than $10, hovering around $1,784, the lowest level since Thursday. The yellow metal is extending the retreat from above $1,800.
Gold price lost momentum during the American session amid higher US Treasury yields that also boosted the US Dollar. The US 10-year yield stands at 3.56% while the 2-year at 4.34%. In Wall Street, the Dow Jones is up by 0.55% and the Nasdaq gains by 0.04%. The improvement in risk sentiment and the rally in crude oil prices (up by more than 3%) are not helping hold.
Price action remains limited on Monday ahead of likely volatile days ahead considering the upcoming events. On Tuesday, the US Consumer Price Index is due. On Wednesday, the Federal Reserve will announce its decision on monetary policy and on Thursday, the European Central Bank and the Bank of England.
Bullish but…
Gold’s chart is still showing a bullish bias but the upside presents difficulties holding above $1,800. The price needs to hold that area. A clear sign would be a daily close above $1,805 that could open the doors to the next strong resistance zone seen at $1,830,
In the very short-term, the bias is to the downside with the next support at ·$1,775. A rebound above $1,790 (20-Simple Moving Average in the 4-hour chart) should change the bias.
Technical levels