Gold Price Analysis: XAU/USD remains vulnerable near multi-month lows

Gold struggled to capitalize on its attempted recovery from the lowest level since July 2020 and was last seen trading with modest losses, around the $1773 region.

Some follow-through US dollar selling extended some support to the dollar-denominated commodity. That said, a pickup in the US Treasury bond yields and the underlying bullish sentiment capped the upside for the non-yielding yellow metal.

From a technical perspective, the commodity's inability to register any meaningful recovery suggests that the near-term bearish bias might still be far from being over. This, in turn, supports prospects for a further depreciating move.

That said, slightly oversold conditions on short-term charts seemed to be the only factor limiting the downside for the XAU/USD, at least for the time being. Nevertheless, the bias remains tilted firmly in favour of bearish traders.

Some follow-through weakness below the daily swing lows, around the $1760 region will reaffirm the negative outlook and set the stage for a slide towards the $1745 support. The metal might eventually drop to test the $1732-30 support zone.

On the flip side, momentum beyond the $1775-76 region might still be seen as an opportunity for bearish positions and runs the risk of fizzling out rather quickly. This should keep a lid on further gains for the XAU/USD ahead of the $1800 mark.

A sustained move beyond the mentioned barrier might negate the bearish outlook and prompt some near-term short-covering move. The commodity might then accelerate the slide further towards the next relevant resistance near the $1825 horizontal zone.

XAU/USD daily chart

Technical levels to watch