Gold Price Forecast: XAU/USD to suffer a further downfall below $1725

The post-NFP USD strength dragged gold to multi-month lows on Monday. XAU/USD has settled over $40 off daily swing lows and edged higher during the Asian session on Tuesday but is not out of the woods yet, FXStreet’s Haresh Menghani briefs.

See – Gold Price Forecast: XAU/USD to plummet towards $1585 on a slide below $1677/70 – SocGen

The fundamental/technical set-up seems tilted in favour of bearish traders

“The fundamental backdrop remains tilted in favour of bearish traders and any meaningful recovery attempt might still be seen as a selling opportunity.”

“Weakness below the $1,725 level will reaffirm the negative outlook and turn the commodity vulnerable to accelerate the decline back to the $1,700 round figure. Some follow-through selling will set the stage for a slide towards challenging YTD lows, around the $1,677-76 area.”

“The $1,750-60 support breakpoint now seems to have emerged as immediate strong resistance. Any further recovery attempt is more likely to meet with some fresh supply and runs the risk of fizzling out rather quickly near the $1,780 region. The latter should cap the XAU/USD and now act as a key pivotal point for short-term traders.”