Gold Price Forecast: XAU/USD has room to gradually decline all the way to $1,752
XAU/USD Death Cross pattern is emerging. Yohay Elam, an Analyst at FXStreet, explains what it means and highlights levels to watch.
Fears of the Fed open the door to an increase in yields, adverse for gold
“The Death Cross is when the 50-day SMA crosses the 200-day SMA to the downside. They are about to ‘kiss’ and then cross at around $1,805.
The move seems inevitable and it will likely be followed by a downfall. Where to? All the way to $1,752. On the way down, there are plenty of support lines, including $1,829, $1,823, $1,810, $1,805, $1,800, $1,790, $1,785 and $1,762.”
“Bulls would be emboldened if XAU/USD recaptures $1,844 and more importantly $1,850. That would open the door to $1,865 and $1,900.”
“The next significant event to watch is the Federal Reserve’s decision on January 26. If the bank signals an imminent rate hike in March and potentially bond-selling later this year, yields would jump and gold could suffer. Conversely, if Fed Chair Jerome Powell and his colleagues send a soothing message of ongoing support to the economy, XAU/USD could avoid the kiss of the Death Cross.”