Gold Price Prediction – XAU/USD Rise Back into Play

Weekly Technical Forecast & Gold Price Analysis – Key Points

  • Gold price action will consolidate much lower as the RSI wavers
  • XAU/USD rate gained 20% as the USD indices reduced by 5% since March.
  • Prices of gold broke out over $1,800 oz in the past one week, the first time since 2011.
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The gold price continues glistening. Gold has spiked higher by 20% following the announcement of the federal reserve that their unlimited QE program would be starting this past March. The increasing gold price action surged XAU/USD over the 1,800 levels last week. This aligns with the 8.5 year high. At the moment, gold trades within an arms reach and is almost about to reach its all-time high.

Gold transcending the key psychologically remarkable 1,800-price mark emphasizes the strong bullish level conviction that was well maintained by the market participants. Essentially, the price of gold action declined lower this week after it failed to break 2011’s entire time high record, $1,825 zone. The impending barrier for the technical resistance establishes the remarkable challenge for the gold bulls gunning towards a new record high.

Another refusal at this $1,825 mark might surge the odds of the double top pattern, which formed. Also, it might give this aspect of technical resistance some added credence from now onwards. At the same time, there is some possibility for the precious metal priced in US Dollars to remain afloat. This is a clear indication that this anti-fiat gold will most likely continue to enjoy the bullish tailwinds as the USD, the biggest haven currency starts to deprecate largely because of the exceptional accommodative fiscal policy decisions by the FOMC.

GOLD PRICE STRENGTH CHART

gold price fomc

What To Expect

The XAU/USD could be preparing for a moderate pullback. However, as the Federal Reserve account drop quickly threatens to bring down the gold price action. Furthermore, the ability for a better consolidation lower is shown by both MACD and the relative strength index. The relative strength index recoiled after it got into the “oversold” territory as the precious metal made some gains in the past one week. At the same time, the gold price strength seems to be waning. This is happening as the MACD outlines how this upside trend momentum has halted. This has been further stressed by Gold Price Remains Under Bearish Pressure After US GDP.

That said, the potential for the gold price to decline even lower and search for the new path has recently garnered some traction. Incase the XAU/USD price action continues to face more downward pressure in the coming week, the 8-day MA may serve the first defense line or the gold bulls. The breakdown below this near-term trendline might restate the ‘shifting tides’ in regards to gold’s broader direction and also steer the price of gold towards the positive carve for the 34-day MA closer to the $1,750 territory.

FOMC

The most recent Bollinger Band shrink also signals the possibility of the prices of gold facing the bearish technical undercurrents in the next few days. In contrast, the ascending carves formed by an array of higher lows and higher highs from early June can offer buoyance to the current XAU/USD price.

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