Gold Price (XAU/USD) Outlook: Potential for a Break Below $1800

Gold price on the XAU/USD chart is trading lower today as demand for the greenback sends the pair sharply lower at the start of the session. Gold price has recouped most of these losses, but downside bias remains as investors seek the comfort of the safe-haven dollar on rising coronavirus cases.

The absence of high-impact data releases allowed the risk-sensitive mood to turn sour over the rapid spread of the delta variant of the coronavirus, even in vaccinated populations. This scenario allowed the safe-have US Dollar to attract demand during the London session. However, this demand has waned slightly in the New York hours. Gold price is trading 0.24% lower as of writing.

Technical Levels to Watch

Gold price was rejected at 1815.20 earlier in the session and endured an intraday selloff before clawing back most of these losses. Gold price remains 0.24% lower on the day. If the rejection at 1815.20 holds with the formation of a pinbar, bears would need to form an outside day bearish candle to initiate a run towards 1789.49. Below this level, additional support forms at 1763.30 before 1741.01 comes into the picture.

On the flip side, the gold price needs to close above the price wall at 1828/1840.00 for bullish recovery to continue. This move targets 1860.77 and possibly 1881.68, but there is a barrier at 1815.20 to be broken.

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XAU/USD Daily Chart

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