Gold Price Forecast: XAU/USD his fresh lows at the $1,980 zone
- US Dollar accelerates its recovery on Monday after a long weekend.
- US yields move higher following NFP, ahead of US CPI.
- XAU/USD fails to hold above $2,000; extends correction from monthly highs.
Gold price is falling by more than 1% on Monday following Friday’s NFP and ahead of crucial US consumer inflation numbers. XAU/USD printed a fresh six-day low near $1,980 and then trimmed losses.
A stronger US Dollar and higher US yield weigh on the yellow metal. The US Dollar Index is having the biggest daily gain in weeks and trades at 102.75. At the same time, the US 10-year bond yield is at 3.43%, and the 2-year is back at 4.00%.
XAU/USD bottomed at $1,981, the lowest level since last Tuesday. It is hovering below $1,990, with a bearish bias in the short term, extending the correction from the recent top at $2,031.
Gold price technical analysis
The metal remains depressed after breaking a relevant short-term uptrend line and also after pulling back under $2,000. The primary trend is bullish and the price holds above key moving averages in the daily chart. The 20-day Simple Moving Average awaits at $1,967.
If XAU/USD rises back above $2,000, it could recover momentum. The next resistance stands at $2,010, followed by $2,022.