Gold Price Forecast: XAU/USD bulls lose conviction amid a death cross

Gold price is treading waters below $1,850 as risk-off flows dominate. As FXStreet’s Dhwani Mehta notes, death cross signals caution for XAU/USD bulls ahead of the Federal Reserve meeting.

Death cross confirmation awaited 

“Gold price is looking to test the upper boundary of a month-long rising wedge formation, now aligned at $1,851. However, gold bulls need to take out the two-month highs of 1,848 first.”

“A potential correction after refreshing two-month highs cannot be ruled out, as the daily chart displays a death cross. The 200-Daily Moving Average (DMA) has crossed the 50-DMA for the upside, flashing a bearish signal.”

“On the downside, immediate declines could be restricted by a strong demand area around $1,829, Friday’s and Monday’s lows. The bullish 21-DMA at $1,818 will then come to the rescue of gold buyers. Further south, January 19 lows of $1,810 will be the next downside target.”

See – Gold Price Forecast: XAU/USD has to do more to prove it is ready to soar higher – DBS Bank