Gold Price Forecast: XAU/USD continues to paint a bearish picture, November lows still in sight

Gold is edging higher toward $1,790. However, in the view of FXStreet’s Dhwani Mehta, XAU/USD is not out of the woods yet.

Daily technical setup favors gold bears ahead of US data flow 

“Investors remain in a wait-and-see mode, awaiting fresh updates on the Omicron variant and day 2 of Powell’s testimony for fresh trading impetus. The US ADP jobs and ISM Manufacturing PMI will provide fresh hints on the economic performance ahead of Friday’s all-important Nonfarm Payrolls data.”

“A sustained break below Tuesday’s low of $1,770 will put the November 3 low of $1,759 at risk. Further south, the $1,750 psychological level will be challenged.”

“XAU/USD need to find acceptance above the $1,792 crucial support now turned resistance for an extended recovery. The next stop for bulls is placed at the $1,800 threshold. If the recovery momentum gathers steam, then gold bulls will reach out to test mildly bearish 21-DMA at $1,820.”