XAU/USD Outlook: Gold Dips Below $1800, on Track for the Third Consecutive Weekly Drop

Technical analysis of Forex market

Spot gold price fell below $1800 level on Friday, on fresh bearish acceleration that extends into fifth straight day.

The yellow metal came under pressure from higher dollar, as well as prospects of higher interest rates in the US and India’s increase of import tax hike that hurt its safe-haven appeal.

Strong bears are also on track for the third consecutive weekly loss (around 2.5% drop this week) that adds to negative near-term outlook.

Clear break of $1800 level after several failures recently would add to bearish signals from negative daily technical studies and open way for further weakness.

Key support at $1680 zone (Mar/Apr higher base/Fibo 38.2% of $1046/$2074 rise) is coming in focus and break here would spark stronger acceleration lower on completion of a double-top ($2070/$2074).

Former low at $1805 marks initial resistance, followed by falling 10DMA ($1821) and 20DMA/broken Fibo 23.6% ($1832), guarding upper pivot at $1844 (200DMA).

Res: 1800; 1805; 1821; 1832.
Sup: 1764; 1753; 1740; 1729.

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