Gold Price Forecast: More XAU/USD losses are in the offing

Gold is back in the red zone, wallowing near $1760 after attempting a tepid bounce to the $1765 level. According to FXStreet’s Dhwani Mehta, XAU/USD’s path of least resistance is down while the focus is on US jobs.

See – Gold Price Forecast: Hidden inflation genie to prevent XAU/USD rises – Deutsche Bank

Bear pennant breakdown confirmed on the 1D chart

“Despite a slight improvement in the market mood, investors still remain cautious, keeping the dollar’s demand underpinned. Meanwhile, stabilizing US Treasury yields also remain a weight on gold price.” 

“Heading into the US ADP payrolls data, the greenback is holding the higher ground near weekly highs, undermining gold prices. The ADP report is expected to show 600K jobs added in June versus 978K recorded previously.”

“Gold price finally confirmed a bear pennant formation on Tuesday, after it closed the day below the rising trendline support at $1771. The measured pattern target calls for a test of $1650 levels. However, the buyers could find some solid support near $1750 and $1725.”

“Any recovery attempts are likely to face stiff resistance at the bear pennant support, now at $1773. Further up, the $1780 round number could limit the advances.”