XAU/USD quotes continue to move within the correction and the downward channel. At the time of the publication of the forecast, the price of Gold is 1777 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 up, 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 a bullish correction and test the resistance level near the area of 1795. 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 1675.
XAU/USD Gold Price Forecast August 5, 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 of falling Gold prices on August 5, 2022 will be a strong growth and a breakdown of the level of 1820. This will indicate a breakdown of the resistance area and continued growth to the area above the level of 1875. 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 1745 , which will indicate a breakdown of the lower boundary of the bullish correction channel.
Thus, the XAU/USD Gold price forecast for August 5, 2022 suggests an attempt to test the resistance area near the level of 1795. Further, the quotes continue to fall with the target below the level of 1675. 1820. This will indicate a breakdown of the resistance area for Gold. In this case, we should expect a continuation of the rise in the price of Gold with a potential target above the level of 1875.