Gold Price Analysis: XAU/USD technical setup remains in favor of the bears ahead of US ISM

Gold (XAU/USD) is struggling to extend its recovery above $1750, having hit eight-month lows of $1717 last Friday. XAU/USD needs acceptance above $1751 to unleash further recovery gains, FXStreet’s Dhwani Mehta reports. 

Key quotes

“Gold’s further recovery hinges on the performance of the Treasury yields and the key US ISM Manufacturing PMI due later in the NA session. If the risk-off mood returns to the market in the day ahead, the safe-haven US dollar could regain its bullish momentum, weighing negatively on gold once again.”

“The multi-month lows of $1717 remain on the sellers’ radars, below which the $1700 psychological level could be tested.”

“A sustained move above $1750 could expose the bearish 50-HMA resistance at $1765. The next critical hurdle is aligned at $1785, which is the confluence of the 100 and 200 averages.”