Gold Price Prediction: XAU/USD falls to roughly $1,810 despite a weakening US Dollar during the holiday week

After failing to sustain above the crucial resistance of $1,830.00 on Tuesday, the gold price (XAU/USD) is falling at a steady clip in the Asian session. The precious metal had a furious swing but was unable to maintain control as the US Dollar Index (DXY) defended the downside and recaptured the 104.00 barrier. The price of gold has decreased to approximately $1,810.00 per ounce and is volatile despite decreased trading volume due to the holiday season.

In the meantime, the risk profile has changed as S&P500 market participants have shown a desire to sell. S&P500 futures have maintained their poor performance and will remain on edge in the absence of a crucial catalyst. Ten-year US Treasury yields have experienced a slight selling pressure, but continue to hold at 3.85 percent.

The reduction in demand for US Durable Goods and the fast decline in the Personal Consumption Expenditure (PCE) Price Index have increased the likelihood that the Federal Reserve (Fed) will reduce its policy rates sooner rather than later. ING economists concur that the recession will accelerate inflation's decline, allowing the Fed to reduce interest rates before the end of CY2023.

After a failed breakout attempt, the Gold price has reversed into the ascending triangle pattern on a four-hour scale. The horizontal resistance of the aforementioned chart pattern is drawn from the high on December 13 of about $1,824.55, while the upward trendline is drawn from the low on November 28 of $1,738.73.

At $1,807.00, the gold price is still above the 20-period Exponential Moving Average (EMA), indicating that the uptrend is robust. In the meantime, the Relative Strength Index (RSI) (14) has failed to persist above 60.00 and has dipped into the area of 40.00-60.00, indicating an impending consolidation.