XAU/USD quotes continue to move within the fall and the descending channel. At the time of the publication of the forecast, the price of Gold is 1809 Dollars per Troy Ounce. Moving averages indicate the presence of a short-term bearish trend. Prices are rebounding from the area between the signal lines, which indicates pressure from sellers of the asset and a potential continuation of the fall from current levels. At the moment, we should expect an attempt to develop growth and test the resistance level near the 1820 area. Where should we expect a rebound down and a continuation of the fall in the price of Gold with a potential target below the level of 1740.
XAU/USD Gold Price Forecast May 16, 2022
An additional signal in favor of falling XAU/USD quotes will be a test of the resistance line on the relative strength index (RSI). The second signal will be a rebound from the upper border of the descending channel. Cancellation of the option to raise the price of Gold on May 16, 2022 will be a strong growth and a breakdown of the level of 1865. This will indicate a breakdown of the resistance area and a continuation of the rise to the area above the level of 1900. Expect an acceleration in the fall of XAU/USD quotes with a breakdown of the support area and closing the price below the level of 1785 , which will indicate a breakdown of the lower boundary of the descending channel.
Thus, the XAU/USD Gold price forecast for May 16, 2022 suggests an attempt to test the resistance area near the level of 1820. Further, the quotes continue to fall with a target below the level of 1740. 1865. This will indicate a breakdown of the Gold resistance area. In this case, we should expect a continuation of the rise in the price of Gold with a potential target above the level of 1900.