Gold Price Forecast: XAU/USD downside opens up towards $1,764 ahead of Fed minutes – Confluence Detector
- Gold price is looking to extend the previous sell-off as the King dollar remains strong.
- Treasury yields bear the brunt of risk-aversion but fail to offer support to buyers.
- XAU/USD’s path of least resistance appears down ahead of Fed minutes.
Gold price remains vulnerable ahead of the Fed minutes, having failed to find acceptance above the $1,800 mark on several occasions. Risk-off flows dominate amid recessionary fears amplified by the Chinese activity data, keeping the sentiment around the safe-haven US dollar broadly underpinned. Despite mounting growth concerns, the Fed is widely expected to hike rates by 50 bps next month, which also continues to hurt the non-interest-bearing bullion. At the moment, However, the weakness in the US Treasury, in the wake of the flight to safety in the American government bonds, could offer temporary comfort to gold bulls. At the moment, the odds of a 50 bps September rate lift-off stand at 62%.
Also read: Gold Price Forecast: Buying intensity eases amid growth concerns
Gold Price: Key levels to watch
The Technical Confluence Detector shows that the gold price is gathering steam to test the previous day’s low of $1,773, below which the previous week’s low of $1,771 will be targeted.
The next downside cap is placed at $1,767, the pivot point one-day S1. The last line of defense for gold bulls is aligned at the Fibonacci 61.8% one-month at $1,764.
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