Gold Price Forecast: XAU/USD extends slide and tests $1,780

• Gold turned negative during the American session.
• A stronger US dollar weighs on XAU/USD on Tuesday.
• Price backs away from $1,800; challenges $1,780.

Gold is falling on Tuesday, ending a four-day streak of daily gains. The metal approached earlier to the $1,800/oz area before turning to the downside. During the last hour, it accelerated the correction and is testing the $1,780 support area.

A rally of the US dollar across the board weighed on gold and also silver. Both are down, retreating from weekly highs. Weaker-than-expected economic data from the US did no affect the dollar. Even US yields rose after the report. Retail sales fell 1.1% in July, against expectations of a decrease of 0.2%. O Wednesday, the Federal Reserve will release the minutes of the latest FOMC meeting.

Also, the risk-averse market sentiment keeps gold under pressure. The Dow Jones is down by 0.85% and the Nasdaq by 1.12%. European indices finished mixed.

Intraday levels to watch

XAU/USD is testing $1,780; a break lower could clear the way to more losses, targeting $1,770 (Aug 16 low) with interim support seen at $1,776. A recovery back above $1,789 should alleviate the bearish pressure. The key resistance above is $1,795: a firm break above would suggest more gains ahead, toward the next obstacle at $1,807.

Technical levels