Gold Price Forecast: XAU/USD set to slide below the $1,800 level

Gold fell sharply on Monday but managed to hold above $1,800 so far. That said, any meaningful recovery still seems elusive ahead of this week's key event/data risk, FXStreet’s Haresh Menghani reports.

XAU/USD to test the $1,800 level one more time

“The Fed is due to release the minutes of its December meeting on Wednesday. Apart from this, the US economic docket features the release of ISM Manufacturing PMI and JOLTS Job Openings data later on Tuesday. This will be followed by the ADP report on Wednesday and the ISM Services PMI on Thursday. The key focus, however, will remain on the closely watched US monthly jobs report on Friday.”

“A sustained break below the $1,800 mark might prompt some technical selling and turn the XAU/USD vulnerable to slide further. The downward trajectory could drag gold towards the $1,785 horizontal zone en-route the next relevant support near the $1,770 region and December swing low, around the $1,753 area.”

“The $1,830-32 region should continue to act as a key barrier, which if cleared decisively should push XAU/USD further towards the $1,850 region. Bulls might then aim to challenge November 2021 swing high, around the $1,877 with some intermediate hurdle near the $1,870 area.”