Gold Price Forecast: XAU/USD eyes deeper losses below $1750

Gold price snaps three-day uptrend as China worries and inflation fears revive the dollar’s safe-haven demand. In addition, gold’s daily technical setup remains in favor of bearish traders, as FXStreet’s Dhwani Mehta notes.

See – Gold Price Forecast: XAU/USD to struggle in the face of rising yields and stronger USD – Credit Suisse

XAU/USD awaits acceptance below $1750 to resume the downside

“The risk sentiment improved slightly but investors continue to remain cautious amid default by another Chinese property developer Fantasia Limited. Meanwhile, rising inflation risks amid the ongoing surge in commodity prices raise global economic growth concerns, weighing on the market mood.”

“XAU/USD looks vulnerable going forward, with all eyes now on the US ISM Services PMI release for fresh trading insights. In the meantime, the US dollar price action and the risk on/ off sentiment will continue to influence the yellow metal.”

“The September 27 highs of $1745 remain on the sellers’ radars if the $1750 barrier gives way. The downside will then open up towards the rising trendline support of $1726.”

“If the bulls manage to find acceptance above that short-term critical 21-DMA, then a fresh advance towards the downward-sloping 50-DMA at $1784 would be inevitable. Gold bulls will then look to recapture the $1800 round number.”