Gold Price Forecast: XAU/USD could struggle amid mixed technical indicators

FXStreet Insights Team FXStreet

Gold price preserves weekly recovery gains. But XAU/USD is at crossroads amid bearish RSI and potential Bull Cross, FXStreet’s Dhwani Mehta reports.

$1,860 will continue to cap the downside

“The 14-day Relative Strength Index (RSI) is extending its gradual recovery but continues to stay below the midline, suggesting that risks remain skewed in favor of sellers. The ongoing higher lows formation combined with an impending bullish crossover, however, is still keeping Gold buyers in the game.”

“The Gold price upturn could gather strength on acceptance above the strong resistance at around $1,885, above which the journey toward the $1,900 threshold will be a smooth one. Further up, the 21-Daily Moving Average (DMA) at $1,912 will be a tough nut to crack.”

“The four-week low of $1,860 will continue to cap the downside, below which the bullish 50DMA at $1,854 will offer further support to Gold bulls. Daily closing below the latter will initiate a fresh downswing toward the January 5 low of $1,825.”

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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