After attempting a feeble bounce to the $1765 level, gold is back in the red zone, wallowing near $1760. The path of least resistance for XAU/USD, according to FXStreet’s Dhwani Mehta, is down while the focus is on US jobs.
See Gold Price Forecast: Hidden Inflation Genie to Keep XAU/USD From Rising – Deutsche Bank.
“Despite a minor uptick in market sentiment, investors remain cautious, maintaining the dollar’s demand. Meanwhile, the price of gold is being weighed down by the stabilization of US Treasury yields.”
“The greenback is hovering at weekly highs when the US ADP payrolls report is released, weakening gold prices. According to the ADP data, 600K jobs were gained in June, compared to 978K the prior month.”
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After closing the day below the rising trendline support around $1771, gold price finally completed a bear pennant formation on Tuesday. A test of $1650 levels is required by the measured pattern target. However, at $1750 and $1725, buyers may find some good support.”
“Any attempts to recover are likely to be met with heavy opposition at the bear pennant support, which is currently at $1773. Further up, the $1780 round number may be a stumbling block.”
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