Gold Price Forecast: XAU/USD to suffer further losses below $1730

Gold has added to last week’s post-NFP losses and has dived to multi-month lows on Monday. As FXStreet’t Haresh Menghani notes, XAU/USD confirms a bearish breakdown and remains vulnerable.

Near-term technical outlook turns bearish

“The US bond yields will continue to play a key role in influencing the USD price dynamics. Traders will further take cues from developments surrounding the coronavirus saga and the broader market risk sentiment. This, along with scheduled speeches by Atlanta Fed President Raphael Bostic and Richmond Fed President Thomas Barkin, will also be looked upon for some meaningful trading opportunities.”

“Any further recovery might still be seen as a selling opportunity near the $1,760-50 support breakpoint. This, in turn, should cap the XAU/USD near the $1,780 region, which might now act as a key pivotal point for short-term traders.”

“Weakness back below the $1,730 level will reaffirm the negative outlook and accelerate the fall back towards the $1,700 round figure. This is followed by the Asian session lows, around the $1,687-86 region, below which bears might aim to challenge YTD lows, around the $1,677-76 area. Some follow-through selling should pave the way for a further near-term depreciating move.”