• Gold spot drops in the day and is losing 0.89%.
• An upbeat market mood weighed on the non-yielding metal, despite that US Treasury yields finished the session with losses.
• Gold Price Forecast (XAU/USD): A daily close below the 200-DMA would send Gold Price tumbling towards $1800.

Gold spot (XAU/USD) continues tumbling in the day and briefly pierced the 200-day moving average (DMA) at $1835.31 a troy ounce, amidst an upbeat market mood as illustrated by US equities recording gains between 0.20% and 1.30%. At the time of writing, XAU/USD is trading at $1837.94.

The Fed tightening risks that could spur a recession, China’s Covid-19 zero-tolerance restrictions, which halted factory production, triggered a slowing in exports, and the Ukraine-Russia conflict, are sentiment factors that, even though traders ignored in the session, they need to be aware of them.

In the meantime, the US Dollar Index, a gauge of the greenback’s value against a basket of its rivals, is rallying 0.68%, up at 103.911 as the New York session winds down. The US 10-year Treasury yield approaches the 3% threshold, recovering some ground after reaching a daily low at 2.942%.

Gold Price Forecast (XAU/USD): Technical outlook

In what appears to be a technical move, XAU/USD moved from around $1850 a troy ounce, below the S1 daily pivot point at $1841.73, and pierced the 200-DMA briefly as the New York session finished. It is worth noting that a daily close below the previously mentioned 200-DMA would exacerbate a fall toward $1800.

If that scenario plays out, the XAU/USD first support would be a four-year-old upslope trendline near the $1815-25 region. Once cleared, the XAU/USD’s bears’ next target would be $1800, followed by the YTD low at $1780.18.

Key Technical Levels