Gold Price Forecast: XAUUSD fails again near $1730, erases daily gains

• Sharp reversal in gold shows recovery is not an easy road.
• The dollar trims losses on Friday amid risk appetite and a rebound in US yields.
• The daily chart shows XAUUSD in a bearish channel, hovering around $1710.

Gold turned to the downside again after approaching the $1730 area and pulled back sharply toward $1710, erasing daily gains on Friday. Stabilization of the US Dollar and a rebound in yields weighed on the yellow metal.

XAUUSD failed to break the critical resistance around $1730 and weakened. A break above would strengthen the outlook for gold, targeting first $1745 and then exposing a downtrend line at $1760. On the flip side, a daily close below $1695 would expose the long term support area at $1675 (2021 and 2022 lows).

Dollar down, but off lows

The greenback moved off lows, with the DXY rising back toward 109.00 and the US 10-year yield recovering 3.30%. Those moves, made the barrier around $1730 in gold stronger.

Not even the better tone in Wall Street capped the retreat. XAUUSD found support at $1710$ and it is about to end the week hovering around $1715, below key resistance levels but also holding above $1700.

On Thursday, Fed Chair Powell continued with the hawkish tone. Next week, the key number will be August US CPI on Tuesday. If market participants see in the numbers that a peak has been reach, gold could benefit.

XAUUSD daily chart