Gold Price Forecast: XAUUSD on the verge of confirming a downside break towards $1,800 and below

Gold Price turns south again after a mixed trading action on Wednesday. A test of multi-month lows sub-$1,800 remains on the cards, FXStreet’s Dhwani Mehta reports.

Symmetrical triangle breakdown looks likely on XAUUSD’s 4H chart

“The dynamics of the dollar and the yields will remain the key catalyst behind gold’s valuations, as the US docket has no top-tier data to offer. The sentiment on global stocks will be also closely eyed for fresh trading opportunities in the precious metal.”

“A four-hourly candlestick closing below the rising trendline support at $1,813 is needed to validate a breakdown, opening floors for a retest of the $1,800 mark. The next critical support awaits at the multi-month lows of $1,787.”

“Recapturing the horizontal 21-Simple Moving Average (SMA) at $1,816. is critical to alleviating the bearish pressure, which could see gold bulls re-attempting the falling trendline resistance at $1,819. Acceptance above the latter will kickstart a fresh upswing towards the descending 50-SMA at $1,831. Ahead of that, Wednesday’s high of $1,825 will challenge the bearish commitments.”