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- Gold Price Analysis: XAUUSD to extend its correction below the $1,842 key support
Gold Price Analysis: XAUUSD to extend its correction below the $1,842 key support
Gold is trading choppy within a familiar trading range, challenging the critical $1,842 demand area. XAU/USD awaits a strong catalyst for a big move, FXStreet’s Dwhani Mehta reports.
Bull-bear tug-of-war around $1,850 extends
“The dollar could likely remain buoyant by the cautious market mood while also finding support from firmer yields. This could keep gold sellers hopeful in the near term. All eyes now turn towards the US inflation data release due on Friday for the next big move in gold price. The critical CPI figures will provide fresh hints on the Fed’s tightening path, impacting the USD valuations, as well as, the metal price.”
“The critical $1,842 demand area is the confluence of the horizontal 21 and 200-Daily Moving Averages (DMA). Daily closing below the latter is needed to extend the correction. Selling resurgence could see bears attacking Tuesday’s low of $1,837, below which a test of the previous week’s low of $1,829 remains on the cards. The last line of defense for buyers is seen at the $1,820 round level.”
“Any recovery will need acceptance above the $1,850 psychological barrier, above Monday’s high of $1,858 could be on the buyers’ radars. The previous week’s high of $1,870 will be a tough nut to crack on the road to recovery.”
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