top of page

Title: Gold Price Forecast: XAU/USD eyes a sustained move below $1,800, downside appears limited

  • Writer: analysiswatch
    analysiswatch
  • Dec 29, 2021
  • 1 min read

Dec 29, 2021 4:52AM ET


By: AnalysisWatch


The gold price extends the previous correction from monthly highs at $1,820 as the US dollar regains strength in a risk-averse market environment. Investors remain cautious in light of the global rise in COVID cases; although studies show that the Omicron variant is less severe. Increasing bets on a Fed rate hike in March have also put gold out of favor. Low liquidity and year-end profit-taking are also keeping gold on the defensive.


The Technical Confluences Detector shows gold approaching a strong demand area around $1,801 to $1,800, which is the convergence of the one-day SMA50, the four-hour SMA50, and the one-week Fibonacci 38.2%.


The next downside target is at $1,744, where the S2 pivot point on a daily basis coincides with the Fibonacci 61.8% on a weekly basis.


Sellers will then watch for the S1 weekly pivot point at $1,792, below which the daily SMA100 at $1,790 could be tested.


If, on the other hand, the $1,800 level holds, a rally towards the 23.6% Fibonacci weekly level at $1,806 cannot be ruled out.


Further up, the meeting of the 23.6% Fibonacci daily and the SMA5 daily at $1,809 comes into play, followed by the previous week's high at $1,811.


The coincidence of the 61.8% daily Fibonacci level and the R1 daily pivot point at $1,815 will be the decisive level for gold bulls.

 
 
 

Comments


2b94f773-a237-4da7-a599-6b42314ed9e6.png

Risk Disclosure: AnalysisWatch will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument you should carefully consider your investment objectives, level of experience, and risk appetite.
AnalysisWatch would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore AnalysisWatch doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.

bottom of page