Gold Price Forecast: There is more room on the upside, XAU/USD to target $1,845

Gold price is holding the lower ground below $1830 as bulls catch a breather before initiating the next upswing towards $1845, FXStreet’s Eren Sengezer reports.

Daily close below $1,810 could cause the outlook to turn bearish

“Gold is likely to stay relatively quiet on Monday due to the Labor Day holiday in the US and additional gains could be witnessed on Tuesday when trading volumes return to normal levels.” 

“On Thursday, the European Central Bank (ECB) will announce its Interest Rate Decision and deliver the Monetary Policy Decision Statement. A hawkish ECB move could cause the USD to face strong selling pressure and help XAU/USD push higher in the second half of the week.”

“The initial resistance is located at $1,845 (static level) ahead of $1,855 (Fibonacci 23.6% retracement of April-June uptrend).” 

“$1,830 (static level) acts as the first support before $1,820 (Fibonacci 38.2% retracement) and $1,810 (200-day SMA). Only a daily close below the latest could cause the technical outlook to turn bearish in the near-term.”