Gold Price Forecast: XAU/USD’s path of least resistance appears down, with eyes on $1,712 and $1,700

Gold price remains pressured near monthly lows. Will US ADP deepen the pain for XAU/USD bulls? FXStreet’s Dhwani Mehta reports.

XAU/USD exposed to additional downside risks

“The critical ADP Employment Change report will be published after a two-month break, potentially driving the next leg higher in the buck. An upside surprise in the ADP numbers cannot be ruled out, given the lower estimates at +200K in August. Gold’s next price direction remains south against a backdrop of higher rates and upbeat US data.”  

“Sellers need a sustained move below monthly lows of $1,720 on their way towards the July 27 low of $1,712. The next significant downside target is seen at the $1,700 level.”

“Any recovery attempts will meet initial resistance at the $1,730 round figure. Bulls must find a firm foothold above the rising trendline support turned resistance at $1,743.”