Title: Gold Price Forecast: XAU/USD eyes $1,776 support amid subdued markets

Dec 22, 2021 4:10AM ET

By: AnalysisWatch

Gold is trading listlessly below $1,800 ahead of the first high-profile US data release of this holiday-shortened Christmas week. A cautious market sentiment amid uncertainties surrounding the Omicron COVID variant continues to discourage investors from placing directional bets on the light metal, leaving it exposed to downside risks.

This area is the intersection of the S1 pivot point on a daily basis and SMA100 on a four-hour basis.

A renewed downside towards the confluence of the 61.8% Fibonacci weekly line and the daily pivot point S2 at $1,1776 is imminent if the bears take the previous hurdle.

Alternatively, strong resistance awaits at $1,792, where the daily and weekly 38.2% Fibonacci lines coincide with the four-hour SMA10.

Further up, gold bulls will try their luck again at the daily SMA200 at $1,796, above which the convergence between the previous day's high and the weekly 23.6% Fibonacci level at $1,800 will come into play.

A rebound in buying above $1,800 will expose the uptrend towards the 38.2% Fibonacci weekly line at $1,804.

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