Gold Price Forecast: XAU/USD Recovers from Monthly Lows and Rises Above $1800

• Gold tries to find a floor to fall, remains under pressure.
• Calm in financial markets contributes to the rebound of metals.

The Prayed it is trading barely in negative territory on Monday after experiencing a recovery in the last few hours. XAU/USD had fallen to $1,786, the lowest level since late January, before bouncing back above $1,800.

The price of an ounce climbed to $1,810, erasing almost all of the day’s losses. It remains just below the aforementioned level, with a different face than hours ago. The short-term tone may favor a bullish extension if the strong rebound is confirmed.

In any case, the dominant trend is still clearly bearish for gold. Resistances can be seen at $1819, and then around $1832. In the opposite direction, a return below $1797 would put the metal under pressure again.

Gold’s rebound was aided by a pullback in Treasury yields. The 10-year tranche yields 2.87%, the day’s low, while the 30-year tranche is at 3.07%.

On Monday, data from the Empire manufacturing index was released from the US, which showed an unexpected drop in May. Tuesday will be the turn of retail sales. The focus will also continue on the statements of the various officials of the Federal Reserve.

Technical levels