XAUUSD needs to clear $1,780 to stretch higher
Gold price started the new week under modest bearish pressure. Though it managed to regain its traction before staging a downward correction toward the end of the week. XAUUSD ended up closing the week little changed above $1,750. The minutes of the Federal Reserve’s October policy meeting and PMI surveys next week could impact the US Dollar’s (USD) valuation and influence the pair’s action. In this article, we’ll detail Gold Weekly Technical Forecast for Week 47, 2022.
Gold price technical outlook
The Relative Strength Index (RSI) indicator on the daily chart retreated modestly after having climbed above 70 earlier in the week. This suggests that the latest decline is a technical correction rather than the beginning of a bearish trend. Additionally, Gold price holds comfortably above the 100-period Simple Moving Average (SMA).
On the upside, $1,780 (Fibonacci 38.2% retracement of the March-November downtrend) aligns as initial resistance. With a daily close above that level, XAUUSD is likely to face strong resistance at $1,800 (200-day SMA) before targeting $1,830 (Fibonacci 50% retracement).
Interim support seems to have formed at $1,750. In case XAUUSD falls below that level and starts using that level as resistance, it could extend its downward correction toward $1,720 (100-day SMA, Fibonacci 23.6% retracement) and $1,700 (psychological level, 20-day SMA).
Gold price forecast poll
Instaforex Nigeria Forecast poll paints a mixed picture for XAUUSD in the short term and the one-week average target sitting at $1,731. The one-quarter outlook remains overwhelmingly bullish with an average target of $1,770.
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