Gold Price Forecast: XAU/USD to extend its recovery momentum in a fantastic start to the week
|Gold price is treading water near two-week highs. XAU/USD could see more gains as the critical 21-Daily Moving Average (DMA) at $1,680 is reclaimed and the Relative Strength Index (RSI) flips bullish, FXStreet’s Dhwani Mehta reports.
Has the tide turned against XAU/USD bears?
“Gold price defied the bearish odds and jumped above the descending 21 DMA at $1,680, closing Monday above that level. This has affirmed a bullish bias, especially after the 14-day RSI swung into positive territory for the first time since August 16.”
“Bulls need to clear daily highs to challenge the flattish 50 DMA at $1,724. Ahead of that, the September 14 high at $1,707 could test bearish commitments.”
“On the downside, the 21 DMA is seen as crucial support, below which the rising trendline support at $1,667 will offer some cushion to bulls. Further down, the $1,660 support area will be a tough nut to crack for bears.”
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