So far this Thursday, gold price is staging a minor comeback around $1820 region because the dollar and yields consolidate the solid gains. ‘Buy the dips’ rescues XAU/USD after the Fed-blow, except for how long? The technical picture has taken the form of a bear flag, which may be a bearish continuation pattern, FXStreet’s Dhwani Mehta briefs.
See – Gold Price Analysis: XAU/USD to finish the year at $1800, potential for a nosedive to $1500 by end-2022 – OCBC
There is scope for extra XAU/USD declines
“Bargain hunting, in light of the recent crash, might be related to the rebound in gold price. The Fed’s hawkish signal is probably going to stay the US currency afloat before the weekly Jobless Claims data and other minority reports, which can maintain the downside pressure on gold. Therefore, gold price could resume the downtrend within the sessions ahead.”
“A fresh downswing, with a test of Wednesday low of $1803 looks inevitable. If the selling pressure accelerates below $1800, the bears will aim for the pattern target measured at $1769.”