Gold Xauusd Forecast Suggests 1800 Price Level Is Important For Bulls

Gold Xauusd Forecast Suggests 1800 Price Level Is Important For Bulls by Ashly Chole last updated on January 06, 2023

Gold (XAU/USD) Forecast Suggests $1800 Price Level Is Important For Bulls

After defending the 200 SMA on the daily chart, the gold (XAU/USD) has managed to find new buyers. The 200 SMA (daily) in gold (XAU/USD) was acting as dynamic support and helped the precious metal jump higher from $1785. Looking ahead, experts believe the next target for gold (XAU/USD) is the $1800 resistance level.

Considering it is a round figure, it will be an important target for the bulls to achieve. Similarly, the bears could lose further momentum if the $1800 price level is pierced with good momentum.

But if we get a close below $1777, which also coincides with the 21 SMA (daily), then the selling pressure will increase in gold (XAU/USD).

$1800 Is Next Resistance For Gold (XAU/USD)

So in a sense, you can say that a battle is going on between the market forces (bears & bulls) to determine the next direction for gold. For the bulls, the $1800 price level in gold (XAU/USD) is important resistance to break. Similarly, we will also see more selling around the $1800 level as sellers will try to defend this level.

But $1800 isn't the only hurdle for the gold (XAU/USD) bulls... Technical analysis of gold (XAU/USD) suggests that there is also a resistance located at $1814, which is the high made on 14th December.

Similarly, the 200 SMA (daily) in gold (XAU/USD) charts is also an important level for the bears. If they manage to breach this dynamic support, it will lead the gold (XAU/USD) prices toward the 21 SMA (daily) or the 20 SMA (daily). If both of these moving averages are broken, then the gold (XAU/USD) prices will likely touch the $1750 price level.

If we look at the fundamental analysis of Gold (XAU/USD), the interest rate hikes in the USA will continue for the next 5-6 months at least. However, the intensity and the size of each rate hike may become small as inflation is brought under control. This means there is a good chance of the US Dollar becoming weak which would lend strength to gold (XAU/USD).