Gold Price Forecast: XAU/USD testing support at $1,800 after rejection at $1,830
- Gold retreats from $1,835 to test support at the $1,800 area.
- A moderate risk appetite is weighing on demand for the precious metal.
- XAU/USD, approaching the apex of an ascending triangle pattern.
Gold futures are testing support at the $1,800 mark on Wednesday’s European session, after pulling back from Tuesday’s high at $1,833. Bullion prices have been treading water above $1,825 for the last two weeks, following a 12% rally from mid-November lows near $1,600.
Gold loses ground amid a moderate risk appetite
The precious metal has been trading lower on Tuesday, giving away gains after a spike high to $1,835 seen on Tuesday. The moderately positive market mood, triggered by news that China is scrapping quarantine for inbound travelers has lifted the market mood in an otherwise quiet post-Christmas market.
Furthermore, the US Dollar remains on the back foot, with the Dollar Index trading 0.2% lower on daily charts and moving right above the 104.00 level, following a moderately positive opening, which pushed the DXY to session highs at 104.35.
XAU/USD moving in an ascending triangle pattern
From a technical perspective, the daily chart shows the pair approaching the apex of an ascending triangle pattern, limited by a resistance area at $1,825, and trendline support from late-November lows, now around $1,795.
With the MACD indicator in negative territory, a confirmation below the mentioned $1,795 would negate the uptrend and boost sellers’ confidence to push the pair towards $1,765/75, the December 6 and 15 lows and the November 23 low at $1720.
On the contrary, a run-up above the $1,825/35 resistance area would confirm the bullish pattern and set the pair aiming to June high at $1,880 before the $1,900 psychological level.