Gold has dipped below $1,800. A break under critical support at $1,780 would signal a trend change, strategists at TD Securities report.

“For the time being, gold prices are managing to hold onto a critical threshold for a change in trend by year-end at $1,780, as rising recession odds fuel inflows for gold as a safe-haven asset.”

“The margin of safety is razor-thin as a break below $1,780 would imply that gold would succumb to the weight of the most hawkish central bank regime since the 1980s. This scenario implies that a sustained downtrend could form in gold should the large CTA selling program catalyze a breakdown in prices.”

“As central banks face a credibility crisis, they could remain committed to their battle against inflation and keep rates elevated for longer than recession odds would otherwise imply.” 

“A break below the $1,780 critical threshold could spark additional outflows on the horizon, which suggests the bias remains to the downside in gold.”

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EUR/USD is challenging the parity mark for the first time since December 2002. The US dollar keeps its winning momentum intact amid risk-aversion. Recession fears, the European gas crisis and China's covid lockdowns hit risk sentiment. ZEW eyed. 

GBP/USD is dropping towards 1.1800, as the US dollar extends its upsurge amid the downbeat market mood. Fresh covid lockdowns in China and the UK political uncertainty will likely keep any upside attempt elusive in cable. 

Gold Price risks a minor pullback amid oversold conditions. China lockdowns and recession fears keep boosting the US dollar. The yellow metal awaits Tuesday’s closing for bear flag confirmation.

XRP price is at an inflection point that could trigger a further sell-off after the recent breakdown of a stable and significant support floor. Therefore, investors need to be cautious about their takes on the market.

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