Gold price witnessed a dramatic U-turn from monthly highs on Friday. XAU/USD could challenge $1,750, with big Fed rate hike bets back in play, FXStreet’s Dhwani Mehta reports.

July inflation report from the US will be the next significant catalyst

“Attention now turns towards the critical US inflation data due this Wednesday, which could likely cement a 75 bps Fed rate hike next month. The greenback could regain the upside traction amid unnerved markets and aggressive Fed tightening calls.”

“The renewed downside has opened up floors for a retest of the $1,750 psychological barrier. Ahead of that, buyers could challenge the August 3 high of $1,754.”

“Buyers need acceptance above the $1,800 mark to continue with its recovery momentum. The next stop for bulls is seen at the horizontal trendline resistance connecting the July 5 high at $1,812.”