Gold Price Forecast: An Upward Trendline To Support XAU/USD At $1,814

Gold prices closed at $1825.65 after placing a high of $1830.65 and a low of $1823.65. Gold reversed its course and faced the pressure of a correction on Monday. It turned red for the day in the absence of US investors due to the bank holiday. On Tuesday, the gold price forecast remained bearish below the 1,824 resistance level.

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Gold Slips Amid Bullish Correction In US Dollar 

Gold traded bearishly but remained near a two-and-a-half-month high. The US Dollar Index gathered strength against its rival currencies and turned green for the day after declining for seven consecutive days. The day before, the DXY reached a 92.3 level, recovered some of its previous losses, and weighed on the precious metal. The US dollar was under pressure, hoping that the Federal Reserve might go slow on tapering economic support. Especially after the release of US Nonfarm Payrolls data last week. 

The US market was closed on Monday due to a holiday, so the lower trading volume kept the losses in gold prices limited for the day. The precious metal remained steady for the day as investors’ expectations related to tapering got a rejection from Fed Chair Jerome Powell. 

Disappointing US Nonfarm Payroll Drives Sellers For Dollar

Last week, the disappointing labor data added selling pressure to the US dollar. The Fed has set strong growth in the job sector as a gauge for starting the tapering of economic stimulus measures.

On Monday, the top US health expert, Dr. Anthony Fauci, said that the US booster shots against the coronavirus were likely to begin only with the vaccine by Pfizer & BioNTech. At the same time, Moderna shots might be delayed.

Ron Klain Criticized The Biden Administration

On the other hand, White House Chief of Staff Ron Klain criticized the Biden Administration for running booster shots ahead of scientific evidence. These developments also kept the US dollar supportive and weighed on the yellow metal prices.

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