Gold Price Forecast: XAU/USD to extend corrective downside on a break under $1,960
Gold price surrendered all of Tuesday’s gains, eroding $60 amid a sharp correction. Is the XAU/USD correction over yet? $1,960 is a make-or-break point for buyers, FXStreet’s Dhwani Mehta reports.
Warranting caution for bulls
“There remains some room for sellers to test the critical support at $1,960, which is the confluence of the ascending 50-Simple Moving Average (SMA) and rising trendline support. Four-hourly candlestick closing below the latter will initiate a fresh downswing towards the bullish 100-SMA at $1,930. Further south, the $1,900 round level will come to the rescue of gold bulls.”
“If the upside resumes traction, then the immediate hurdle is seen at the $2,000 psychological mark. The next bullish target is envisioned at the horizontal 21-SMA at $2,006, above which bulls could attempt a fresh run-up towards $2,050. The record highs of $2,075 still remain a tough nut to crack for XAU buyers.”
See – Gold Price Forecast: XAU/USD to post new record highs towards $2,285/2,300 – Credit Suisse
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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.
