XAU/USD quotes continue to move within the framework of growth and the formation of the downward pattern “Wolfe Wave”. At the time of the publication of the forecast, the price of Gold is 1841 Dollars per Troy Ounce. Moving averages indicate the presence of a short-term bearish trend. Prices have broken through the area between the signal lines, which indicates pressure from buyers of the asset and a potential continuation of growth already from current levels. At the moment, we should expect an attempt to develop growth and test the resistance level near the 1845 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 1790.
XAU/USD Gold Price Forecast May 20, 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 20, 2022 will be a strong growth and a breakdown of the level of 1875. This will indicate a breakdown of the resistance area and a continuation of the rise to the area above the level of 1920. 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 1815 .
Thus, the XAU/USD Gold price forecast for May 20, 2022 suggests an attempt to test the resistance area near the level of 1845. Further, the quotes continue to fall with the target below the level of 1790. 1875. This will indicate a breakdown of the Gold resistance area. In this case, we should expect the continuation of the rise in the price of Gold with a potential target above the level of 1920.