Gold Price Forecast: XAUUSD to suffer another leg lower on a drop below $1,800

XAU/USD bears have the upper hand. Break below $1,800 awaited, FXStreet’s Haresh Menghani reports.

Watching aggressive Fed rate hike bets 

“Traders will further take cues from remarks by several FOMC officials, including Fed Chair Jerome Powell for clues about the possibility of a 75 bps rate hike move. This, in turn, will play a key role in influencing the near-term USD price dynamics and provide a fresh directional impetus to gold.”

“It will be prudent to wait for some follow-through selling below the $1,800 handle before positioning for any further losses. The next relevant support is pegged near the $1,782-$1,780 region, or 2022 low, below which gold could accelerate the slide towards the $1,753-$1,751 zone.”

“On the flip side, attempted recovery might now be seen as a selling opportunity near the $1,828-$1.829 region. This, in turn, might cap the metal near a technically significant moving average, around the $1,835 region. The latter, if cleared decisively, might trigger a short-covering bounce. Gold could then climb back to the $1,858-$1,860 supply zone.”