Gold Price Forecast: XAU/USD seems to have formed technical support at $1,740 ahead of $1,730

Gold closed the third straight week in the negative territory. In the view of FXStreet’s Eren Sengezer, XAU/USD remains vulnerable amid hawkish Fed outlook.

Hawkish FOMC policy outlook, rising US T-bond yields weighed on gold

“FOMC Chairman Jerome Powell clarified that the language in the statement meant to flag the bar for taper could be met as soon as the next meeting. Additionally, Powell said that they are planning to conclude the taper around mid-year 2022.”

“Investors will keep a close eye on the US T-bond yields' movements and the general risk sentiment. 1.5% aligns as key resistance for the benchmark 10-year US T-bond yield and a break above that level could trigger a rally and pave the way for another leg lower in the yellow metal.”

“Static support seems to have formed at $1,740 ahead of $1,730 and $1,720.” 

“A daily close above $1,770 (Fibonacci 61.8% retracement of April-June uptrend) could attract buyers and gold could target $1,790 (20-day SMA, 50, day SMA) before $1,800 (psychological level) and $1,805 (200-day SMA).”