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Gold Price Forecast: XAU/USD at Risk of Further Downside Below the Psychological $2000 Mark

May 17, 2023

Via: DailyFX

Gold prices have steadied following yesterday’s fall as key support level and 50-day MA come into play. The dollar index (DXY) has strengthened in the early part of the week as the continued deadlock over the US debt ceiling continues.

Gold prices have benefitted over the past few months as demand has surged on the back of recessionary concerns and the US banking crisis. However, given all the uncertainties, gold prices failed to sustainably hold above the $2000 mark leading market participants to wonder, is this the end of the bullish cycle? I for one see further uncertainty ahead as Central Banks look to pause rate hikes with Gold likely to be a beneficiary of any further market uncertainty in the second half of the year.

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