Gold Price rebounds from multi-month lows but is not out of the woods yet. In the view of FXStreet’s Dhwani Mehta, XAUUSD remains a ‘sell the bounce’ trade.

Hawkish Fed expectations to keep any rebound limited

“Sellers continue to lurk amid persistent recession fears, as a 75 bps June Fed rate hike seems to be a done deal.”

“On the upside, the previous week’s low at $1,829 will need to be scaled to kick in any meaningful turnaround. The next critical resistance is pegged near the June 7 low of $1,837, above which the 200 DMA will be retested.”

“If XAU sellers return then the daily lows could be taken out, at first. The horizontal trendline support at $1,807 will be the line in the sand for gold optimists, below which the $1,800 threshold could be at risk.”

See – Gold Price Forecast: XAUUSD to suffer substantial downside pressure on a break below $1,810 – TDS