Gold Price Forecast: XAU/USD set to tackle the monthly low at $1,753

XAU/USD held steady on Wednesday and was seen oscillating in a narrow trading band, just below the $1,790 level through the Asian session. As FXStreet’s Haresh Menghani notes, the set-up favours bearish traders and supports prospects for a slide to retest the monthly swing low.

XAU/USD bears could aim to challenge monthly low

“Market participants now look forward to the US economic docket, highlighting the release of the final Q3 GDP print and the Conference Board's Consumer Confidence Index. This, along with the US bond yields, will influence the USD and provide some impetus to gold heading into the year-end holiday season.”

“Last week's failures near the $1,814-15 resistance and the emergence of some selling on Tuesday favours bearish traders. Hence, a further downfall back towards testing the monthly swing low, around the $1,753 region, remains a distinct possibility. The $1,772 horizontal level could act as intermediate support on the way down.”

“Momentum beyond the $1,800 mark might continue to face stiff resistance near the $1,814-15 region. Some follow-through buying might trigger a short-covering move and push XAU/USD back towards the $1,832-34 heavy supply zone. The latter should act as a key pivotal point, which if cleared decisively will negate the bearish bias.”