Gold Price Forecast: XAU/USD hits fresh daily lows under $1860 on a volatile session
16.11.2021, 14:48

Gold Price Forecast: XAU/USD hits fresh daily lows under $1860 on a volatile session

  • After a spike higher, gold spikes to the downside and then rebounds to $1865.
  • Volatile session for metals as the US dollar strengthens.
  • US economic data surpass expectations, stocks and yields rise.

Gold prices dropped almost $20 from the peak during the last sixty minutes as volatility soars. XAU/USD hit a fresh five month high at $1877 and then turned to the downside following US economic data. Recently it bottomed at $1858, before rising to $1865. Silver is also affected by volatility. XAG/USD reversed sharply after reaching $25.41 and fell under $25.00.

USD gains on data, metals sideways

US data surpassed expectations with both reports: retail sales and industrial production. The numbers boosted the greenback and also US yields. The 10-year yields climbed to 1.63% a fresh high, and then pulled back. The DXY printed fresh monthly highs above 95.70 and is gaining 0.20%.

Gold was trading higher for the day, at five-month highs and then dropped sharply. The upside bias weakened during the last hour and price is testing levels below a key short-term uptrend line. A consolidation below $1855 should point to a correction. The next relevant support stands at $1840.

On the upside, if XAU/USD manages to rise back and hold above $1870, it would keep the doors open to more gains, targeting the next resistance zone around $1890.

Technical levels

 

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