Gold Price Forecast: XAU/USD remains resilient near $1,760 amid softer USD

• Gold remains range-bound following the previous session’s upside movement.
• Higher US Treasury yields exert pressure on the higher side.
• US Debt ceiling, US-China optimism, US Job data remain focus points.

Gold prices continue to trade in a broader range of $1,7750 and $1,750. The prices recovered from the lower levels as bullish bargain buyers stepped in to buy earlier dip in prices. On the other side, a higher US dollar index, rising US Treasury bond yields limit the gains.

The US Dollar Index, which tracks the performance of the greenback against the basket of six major currencies, remains flat near its one-year high at 94.20, making the precious metal cheaper for other currencies holders. The yield on the benchmark 10-year US Treasuries eased off more than a year high overnight but remained above the 1.5% mark.

The US ADP non-farm employment change for September came at a higher-than-expected 568,000 as compared to the forecast of 425,000 jobs. The upbeat reading came as COVID-19 cases subsidies boosting activity such as dining out restaurants and travel. The readings came before the more important US employment data from the Labor Department on Friday. Meanwhile, investors remained optimistic to monitor a debate in the US Senate to increase the debt ceiling. Although the Republicans and Democrats are nearing a deal for a temporary increase to avert a federal debt default, the bipartisan debate continues.

US stock futures rose sharply on Thursday following US politicians' deal to avoid a federal debt default, along with the reports that Washington and Beijing have agreed to hold a virtual meeting before the end of the year.

Technical levels

Gold prices have been trading in a continuous downturn trend in the shorter time frame. After testing the high near $1,834.02 in September, the prices held onto the downside momentum with recent refuge at the double bottom formation near $1,720. The prices trade below the 21-day Simple Moving Average (SMA) at $1,765, which is confirming the downside pressure on the gold.

XAU/USD daily chart

The Moving Average Convergence Divergence (MACD) holds onto the oversold zone. Any downtick in the MACD indicator would confirm amplify the selling pressure and the prices would approach toward the previous day’s low at $1,746. A daily close below the $1,740 horizontal support level would entice the bears to test the low made on September 30 at $1,722. Next,  XAU/USD  could meet the key $1,700 level on the downside.

Alternatively, if the prices sustain an intraday high, it could retrace back to the $1,770 horizontal and the $1,785 horizontal resistance zones. Next, the market participant could test the high made on September 15 at $1806.

XAU/USD additional levels