- Summary:
- Gold price (XAU/USD) resumes downward move amid risk-averse environment driven by the massive overnight fall in the Turkish Lira.
Gold prices opened the week amid some bearish pressure, which sent the XAU/USD trading lower by $17. The risk-averse sentiment that the markets kicked off the week with continues to favour a strong dollar this Monday, but this strength appears to have ebbed a little, allowing the XAU/USD to locate support at the $1730 price level.
Today’s flight to safety was triggered by the massive selloff in the Turkish Lira after President Recep Erdogan sacked the Governor of the Central Bank of the Republic of Turkey following last week’s 200 basis points rate hike. This environment has allowed the greenback to gain strength across the board.
Gold Price Technical Levels to Watch
The 1730.06 support is the intraday support, which is also where the ascending trendline on the 4hour chart intersects the horizontal price support level. A bounce from this area targets the 1738.547 resistance, with 1747.671 forming an additional short-term resistance as well. 1753.292 is the next upside barrier in line before gold price targets 1760.
On the other hand, a breakdown of the 1730.064 support allows bears to target 1722.307, with 1699.273 and 1680.242 serving as additional targets to the south.
Gold Price (XAU/USD) 4-Hour Chart
