Gold Price Forecast: XAU/USD's near-term downtrend might still be far from over

Gold, so far, has been struggling to register any meaningful recovery. The lack of bullish conviction suggests that further losses are probable, FXStreet’s Haresh Menghani reports.

XAU/USD remains vulnerable

“A fall below the $1,620 area (YTD low), en route to the $1,600-$1,590 region, remains a distinct possibility. Some follow-through selling will be seen as a fresh trigger for bearish traders and drag gold towards the $1,567-$1,565 support zone. The downward trajectory could extend towards the $1,530-$1,528 region, below which the XAU/USD might aim to challenge the $1,500 psychological mark.”

“The overnight swing high, around the $1,640-$1,642 area, now seems to act as immediate resistance. This is followed by the trading range support breakpoint, around the $1,654-$1,656 region, which if cleared might trigger a short-covering move towards the $1,675-$1,676 supply zone. Some follow-through buying will negate any near-term negative bias and pave the way for additional gains towards the $1,700 mark.”

See – Gold Price Forecast: XAU/USD seen at $1,620 by year-end – ANZ