Gold Price Forecast: XAU/USD set to test the 2022 lows of $1,681 once again

Gold price falls for the third straight, As FXStreet’s Dhwani Mehta notes, XAU/USD is poised for a big breakdown on big Fed rate hike bets.

XAU/USD awaits Thursday’s close to confirm an inverted cup and handle pattern

“The renewed uptick in the US Treasury yields, in the face of aggressive Fed rate hike expectations, also offers support to the greenback while adding to the weight on the non-yielding gold.” 

“Bears now await the price to yield a daily closing below the rising trendline support at $1,693 to validate an inverted cup and handle formation. On a downside break, a test of the 2022 low at $1,681 will be inevitable, below which the 2021 low at $1,677 will come into play.”

“On the flip side, the $1,700 level will offer the immediate resistance, above which gold buyers will need to crack Monday’s low of $1,712. The $1,720 round number and the 21-DMA, now at $1,724, will be the next lines of defense for sellers.”