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  • On Tuesday, the gold price forecast remained bearish below the 1,824 resistance level. 
  • The Bureau of Labor Statistics is set to release Producer Price Index data later this week
  • Forex trading market participants may sell below the $1824 level to target the $1,815 and $1,809. 

Gold prices closed at $1825.65 after placing a high of $1830.65 and a low of $1823.65. Gold reversed its course and faced the pressure of a correction on Monday. It turned red for the day in the absence of US investors due to the bank holiday. On Tuesday, the gold price forecast remained bearish below the 1,824 resistance level.

If you are interested in trading XAU/USD with forex robots, check out our guide.

Gold Slips Amid Bullish Correction in US Dollar 

Gold traded bearishly but remained near a two-and-a-half-month high. The US Dollar Index gathered strength against its rival currencies and turned green for the day after declining for seven consecutive days. The day before, the DXY reached a 92.3 level, recovered some of its previous losses, and weighed on the precious metal. The US dollar was under pressure, hoping that the Federal Reserve might go slow on tapering economic support. Especially after the release of US Nonfarm Payrolls data last week. 

The US market was closed on Monday due to a holiday, so the lower trading volume kept the losses in gold prices limited for the day. The precious metal remained steady for the day as investors’ expectations related to tapering got a rejection from Fed Chair Jerome Powell. 

Disappointing US Nonfarm Payroll Drives Sellers for Dollar

Last week, the disappointing labor data added selling pressure to the US dollar. The Fed has set strong growth in the job sector as a gauge for starting the tapering of economic stimulus measures.

On Monday, the top US health expert, Dr. Anthony Fauci, said that the US booster shots against the coronavirus were likely to begin only with the vaccine by Pfizer & BioNTech. At the same time, Moderna shots might be delayed.

Ron Klain Criticized the Biden Administration

On the other hand, White House Chief of Staff Ron Klain criticized the Biden Administration for running booster shots ahead of scientific evidence. These developments also kept the US dollar supportive and weighed on the yellow metal prices.

The global case count of coronavirus infections surpassed 220.4 million. At the same time, the death count stood at 4.5 million throughout the globe on Monday. Almost 5.46 billion doses of vaccine shots have been administered worldwide. Nevertheless, the Delta variant is still spreading at a faster rate and showing no sign of slow-down.

The US Producer Price Index is Set to be Released on Friday.

The Bureau of Labor Statistics is set to release Producer Price Index data later this week. Thus, the investors’ focus will remain on releasing the PPI report. It’s expected to fall to 0.6% from the previous 1.0%. 

Any figure above 0.6% could support the US dollar and push gold prices lower. In contrast, any figure below the expected level could weigh on the US dollar and push gold prices upward.

Gold Price Forecast
XAU/USD Daily Chart

Gold Price Forecast – Technical Levels

Support Resistance

1822.65 1829.65

1819.65 1833.65

1815.65 1836.65

Pivot Point: 1826.65

Gold Price Forecast – Upward Trendline to Support at 1,816 Level

On Tuesday, the gold price forecast remained bearish below the 1,824 resistance level. On the 4 hour timeframe, it’s heading lower towards the next support area of 1,809, which is being extended by a triple bottom level. However, an upward trendline may extend immediate support to gold at the 1,815 level.

On the bearish side, a breakout of a triple bottom support level of 1,809 could drive sharp selling until the next support levels of 1,801 and 1,789 are reached. Recently, gold has closed a bearish engulfing candle at around 1,824, which is supporting a selling trend.

A breakout of 1,824 levels can lead the gold price towards 1,832 and 1,845 levels on the bullish side. The 50 day EMA (exponential moving average – red line) holds at the $1,824 level, supporting gold’s bearish trend. Moreover, the leading indicator, Stochastic RSI, stays below 50, keeping the bearish trend in gold. On a higher timeframe, gold’s trading range is likely to be 1,832 – 1,809 level. 

Therefore, the Forex trading market participants may sell below the $1824 level to target the $1,815 and $1,809. Alternatively, traders can take a buying position above the $1,809 level today. All the best!

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