Gold Price Forecast: XAU/USD bulls to take the helm on a break above $1,800
25.10.2021, 06:07

Gold Price Forecast: XAU/USD bulls to take the helm on a break above $1,800

The focus shifts to US GDP while XAU/USD bears and bulls fight over $1,800. FXStreet’s Eren Sengezer expects gold to head towards $1,825 before $1,840 on a break above the aforementioned $1,800 resistance.

Neither sellers nor buyers have control of the critical $1,800 level

“On Thursday, the European Central Bank (ECB) will announce its Interest Rate Decision and release the Monetary Policy Decision Statement. In case the ECB event highlights the policy divergence with the Fed, the greenback could regather its strength and bring forth XAU/USD weakness.”

“The US Bureau of Economic Analysis will release its first estimate of third-quarter Gross Domestic Product (GDP) growth. On a yearly basis, the GDP is expected to expand by 3.2% following the 6.7%. A GDP reading near the market consensus could trigger another leg higher in US T-bond yields. On the other hand, a big miss could cause investors to price in a delay in the reduction of the Fed’s asset purchases and weigh heavily on the dollar.”

“It's difficult to say that the outlook is bullish unless gold makes a decisive move above the $1,795/$1,800 area. Above that hurdle, $1,825/30 area (Fibonacci 38.2% retracement of the April-June uptrend, static level) could be seen as the next target before $1,840 (static level).”

“On the downside, $1,780 (50-day SMA) aligns as the first support ahead of $1,770 (former resistance, Fibonacci 61.8% retracement). Sellers are likely to maintain control of the action as long as the above-mentioned resistance holds.”

 

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