Gold Price Forecast: XAU/USD reclaims the $1,780.00 on the back of US dollar weakness

• Despite higher US T-bond yields, gold advances during the New York session.
• Risk-on market sentiment weakened the safe-haven status of the greenback, favoring flows towards the non-yielding metal.
• XAU/USD: For buyers, strong resistance lies ahead at $1,800.00.

Gold (XAU/USD) climbs during the New York session, up 0.91%, trading at $1,785.38 at the time of writing. The market mood is in risk-on mode due to robust US corporate earnings, which eases concerns about labor shortages and elevated prices for raw materials.

Meanwhile, gold extended its two-day rally after the last Friday’s collapse that witnessed the yellow metal tumbling $32.00 on the back of a good US Retail Sales Report.

In the meantime, the US Dollar Index, which correlates inversely to the non-yielding metal, sinks 0.21%, sitting at  93.59, contrarily to the US T-bond 10-year yield, which is advancing one basis point, currently at 1.645%, at press time

XAU/USD Price Forecast: Technical outlook

Daily chart

In the daily chart, XAU/USD is trading above the 50-day moving average (DMA) at $1,779.05, approaching the $1,800.00 area. Around this level lies the confluence of a downward slope trendline, coupled with the convergence of the 100 and the 200 DMA would add selling pressure on the precious metal.

In the outcome of an upside break of the abovementioned could exert upward pressure on XAU/USD. The first resistance level on the way up would be the September 3 high at $1,834.02, followed by the June 11 high at $1,903.33.

On the flip side, failure at the latter could send gold tumbling towards the October 6 low at $1,765.09. A breach of the latter would expose crucial support levels, as the September 29 low at $1,745.56, followed by the August 9 low at $1,687.78

The Relative Strenght Index (RSI), a momentum indicator, is at 55, aiming higher, suggesting that buying pressure could may help a gold rally towards a $1,800.00 test.