Gold Price Forecast: XAU/USD to drive away bears above key resistance at $1,790

Gold ended up closing the week little changed slightly above $1,780 as XAU/USD failed to clear key resistance at $1,790. Therefore, the yellow metal XAU/USD has not yet gathered enough momentum to reverse its direction, according to FXStreet’s Eren Sengezer.

FOMC will release June meeting minutes on Wednesday

“On Tuesday, the ISM Services PMI data will be looked upon for fresh impetus. Investors are likely to ignore the headline figure unless there is a big divergence from the market consensus of 62.3. The Prices Paid Index, once again, will be the key figure to watch. A stronger-than-expected print could allow the greenback to continue to gather strength.”

“On Wednesday, the FOMC will release the minutes of its June meeting, during which policymakers have made a hawkish shift in the policy outlook. Unless this publication offers a dovish surprise, the USD should be able to keep its firm footing and limit XAU/USD’s rebound.”

“A daily close above $1,790 (100-day SMA) could open the door for additional gains toward $1,800 (psychological level, Fibonacci 50% retracement of April-June uptrend) ahead of $1,815 (20- day SMA).”

“The initial support is located at $1,770 (Fibonacci 61.8% retracement) before $1,750 (June 29 low). In case sellers drag the price below the latter, the next target is located at $1,735 (static level).”