Gold Price Analysis: XAU/USD still eyes June 2020 lows at $1670 after weekly closing below $1700
|- Weekly closing below $1700 keeps the XAU/USD sellers hopeful.
- A bounce towards 50-SMA on 4H cannot be ruled out in the near-term.
- RSI stays bearish while gold holds within a potential falling wedge.
Gold (XAU/USD) settled Friday almost unchanged below the $1700 mark, recovering from nine-month lows of $1687 reached earlier in the day.
A doji candlestick formed on the daily chart on Friday seemingly points to seller exhaustion, which suggests a rebound could be in the offing if the price of gold manages to find its feet above the $1700 mark.
Looking at the four-hour chart, the XAU bulls have well-defended the falling wedge support at $1681, which has helped them to stage a modest comeback.
A falling wedge breakout would be confirmed on a four-hour candlestick closing above the $1707 level.
The recovery from multi-month lows could gain further traction if the bearish 21-simple moving average (SMA) at $1713 is cleared on a sustained basis.
The gold buyers could then target the downward-sloping 50-SMA at $1742 on their road to recovery.
The Relative Strength Index (RSI) is on a steady recovery from near the oversold region, which also suggests a bounce could be on the cards in the near-term.
Gold Price Chart: Four-hour
If the XAU bears defy the bullish continuation pattern and prompt the price to yield a downside break below the key $1681 support, the June 2020 low at $1760 will be back on the sellers’ radar.
The last line of defense for the bulls is seen at $1750, the psychological barrier.
Gold Additional levels
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