Gold Price Forecast: Trade The Range With XAU/USD Above $1,783

Meanwhile, Cleveland Federal Reserve President Loretta Mester said that she would still like the central bank to begin tapering asset purchases this year. He joined the team of policymakers in making it clear that their plans to start reducing support were not disrupted by weaker job growth in August. These comments supported the US dollar a little and further capped gains in gold prices.

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Gold Price Forecast

XAU/USD Daily Chart

Gold Price Forecast – Daily Support And Resistance

  • Support Resistance
  • 1786.41 1801.36
  • 1778.28 1808.18
  • 1771.46 1816.31
  • Pivot Point: 1793.23

Gold Price Forecast – Descending Triangle Underpins Gold At 1,783 

On Tuesday, the gold price forecast remains neutral in a narrow trading range of 1,796 – 1,784 levels. On the 4 hour timeframe, gold faces immediate resistance at the 1,796 level, which is being extended by 50 periods of the exponential moving average.

A bullish breakout of the 1,796 level will likely extend a buying trend until the next resistance level of 1,801. Moreover, a further bullish breakout of the 1,801 level exposes gold prices towards the next resistance level of the 1,815 level.

Alternatively, gold may find immediate support at the pivot point level of 1,783. However, a bearish breakout below this level could extend the selling trend until the next support levels of 1,777 and 1,773.

Taking a look at the 50 period EMA (exponential moving average – red line), it is holding around the 1,793 level. The closing of candles below this level supports a selling bias in the precious metal, gold. Moreover, the leading indicator, Stochastic RSI, rests in a selling zone below 50. It indicates a selling bias in gold.

Lastly, the descending triangle pattern typically breaks below on the lower side. Therefore, the violation of the 1,783 level can trigger further selling until the 1,773 level in gold.

Therefore, Forex trading market participants may buy above the $1,783 level to target the $1,801. Alternatively, traders can take a sell position below the $1,783 level today. All the best!

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Disclaimer: Foreign exchange (Forex) trading carries a high level of risk and may not be suitable for all investors. The risk grows as the leverage is higher. Investment objectives, risk ...

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