Gold Price Forecast: XAU/USD struggles to defend $1,800 breakout on firmer USD

• Gold snaps five-day uptrend, refreshes intraday low of late.
• Market sentiment dwindles amid pre-GDP caution, light calendar.
• US Treasury yields rebound, add strength to the greenback.
• Gold Price Forecast: Bulls eyeing the 1,830 price zone

Gold (XAU/USD) consolidates recent gains around $1,805, refreshing intraday low during early Tuesday following a five-day uptrend. Although risk-on mood underpinned the yellow metal to stay firmer of late, the US dollar rebound challenges the buyers ahead of important data/events of the week.

Having recovered from a fresh monthly low, the US Dollar Index (DXY) keeps the previous day’s advances, up 0.06% on a day near 93.90 by the press time. The hawkish Fedspeak and a blackout period preceding the advance estimation of US Q3 GDP probe the optimists and direct the cautious traders toward the greenback.

Also recently contributing to the DXY strength, weighing on the gold prices, were the recently positive US Treasury yields. That said, the US 10-year Treasury yields snap two-day downturn near 1.64% at the latest.

Market sentiment stayed firmer the previous day as comments from US President Joe Biden and House Speaker Nancy Pelosi propelled stimulus hopes, joining positive headlines from China’s Evergrande and Tesla’s fresh record high.

While portraying the mood, Wall Street benchmarks refreshed all-time high while the S&P 500 Futures print mild gains by the press time.

Given the lack of major data/events ahead of Thursday’s US GDP, second-tier releases like US Consumer Confidence and Durable Goods Orders may entertain gold traders. Also important will be the moves of the US Treasury yields and headlines from China, as well as relating to the US stimulus.

Technical analysis

Despite the recent pullback, gold keeps upside break of the key hurdle comprising 200-DMA and a descending trend line from early June, now support around $1,793.

Given the bullish MACD signals and an absence of the overbought RSI conditions, not to forget the metal’s sustained trading beyond the $1,800 threshold, gold prices are likely rushing towards the $1,834 resistance, comprising tops marked since July.

During the quote’s upside past $1,834 will aim for the $1,900 round figure with the mid-$1,800s likely probing gold buyers on their way.

In a case of the latest declines dragging gold below $1,793 resistance-turned-support, bulls may not lose hope until the commodity remains beyond the monthly support line, around $1,777 by the press time.

Overall, gold is up for pleasing the bulls before the next test around $1,834.

Gold: Daily chart

Trend: Bullish