Gold Price Forecast: XAU/USD to suffer more declines on a break below $1,800

Gold price is consolidating the Fed-led sell-off to weekly lows just above $1,810. XAU/USD bears await US Q4 GDP for the next leg lower, FXStreet’s Dhwani Mehta reports.

Death cross to keep any recovery short-lived

“Bears take a breather in the aftermath of the Fed decision while waiting for the US advance Q4 GDP and Durable goods data. The US economy is likely to have regained steam in Q4, 2021, as the growth is seen at the best level in 37 years, arriving at 5.4% YoY. Meanwhile, easing geopolitical tensions around Ukraine, weigh negatively on the traditional safe-haven gold.”

“A sustained break below $1,810, which is the January 19 lows, is needed to test the critical support near $1,805, where the 200-Daily Moving Average (DMA) and the 50-DMA coincide, having confirmed a death cross earlier this week. That level also brings in the wedge support line.”