Gold Price Forecast: XAU/USD bears to retain control while below stubborn $2,007 resistance

Gold bulls continue to face stiff resistance at the horizontal 21-Simple Moving Average (SMA) at $2,007. Meanwhile, XAU/USD’s downside appears capped at $1,971, FXStreet’s Dhwani Mehta reports.

Gold price is trapped between 21 and 50-SMAs

“A strong cap at $1,971 will likely limit gold’s decline, as the triangle support and the upward-sloping 50-SMA converge at that level. A firm break below that crucial support will open up the further downside towards the $1,950 psychological level, below which the ascending 100-SMA at $1,937 could be probed.”

“immediate resistance is seen at $2,000, above which bulls need to crack the 21-SMA to take on the triangle hurdle at $2,021. The $2,050 round level could emerge as the next relevant resistance on the renewed upside”.

See – Gold Price Forecast: XAU/USD seen at $2,000 by year-end as its safe-haven appeal is erratic – ABN Amro