Gold Price Forecast: XAUUSD could bounce before the next downswing

Gold Price is sitting at three-month troughs just above $1,850. XAU/USD bulls could come up for a last dance ahead of the Federal Reserve meeting on Wednesday, FXStreet’s Dhwani Mehta reports.

A rebound could be in the offing

“The US dollar could extend its correction, as investors resort to repositioning ahead of the all-important Fed event. Further, markets weigh the downbeat US ISM and S&P Global Manufacturing PMI reports, which could keep the sentiment around the greenback undermined.”

“Gold Price is finding some bids in the $1,850 area, which could prompt a comeback towards the daily highs of $1,867. The $1,870 round figure could then be next on buyers’ radars. Acceptance above the latter will fuel a fresh advance towards the mildly bullish 100-Daily Moving Average (DMA) at $1,879.”

“With the hawkish Fed bets in play, any recovery attempts are likely to be temporary.”

“If the $1,850 level gives way amid a selling resurgence, then a sharp sell-off towards the rising 200-DMA at $1,834 will be inevitable. Ahead of that, the $1,840 level could come to the rescue of gold bulls.”