Gold Price Analysis: The tide is turning once again in favor of XAU/USD bears

Gold attempts a tepid recovery after the Yellen-induced blow. However, XAU/USD’s continued rejection at $1800 keeps buyers on the edge, FXStreet’s Dhwani Mehta reports.

See – Gold Price Analysis: XAU/USD to see selling pressure on risk-on return – OCBC

US ADP jobs data and ISM Services PMI data eyed

“Gold’s rebound could gain traction if the risk recovery picks up momentum and weighs further on the dollar in the day ahead. However, upbeat US ADP jobs and ISM Services PMI could revive the bullish undertone in the US currency, limiting gold’s advance. Further, if the Wall Street slide extends into Wednesday, it could likely trigger a flight to safety, lifting the dollar’s haven demand once again.”

“Immediate support at $1778 appears to get tested. That level is the meeting point of the 21 and 50-SMAs. Further south, the ascending 100-SMA at $1773 could help slow down the decline, below which Tuesday’s low of $1770 will be challenged.”

“Aa sustained recovery above $1784 could reinforce the uptrend towards $1800.” 

“The range play is likely to continue below $1800 unless a daily close above the latter is witnessed.”