Gold Price Forecast: XAU/USD’s technical setup points to more pain ahead, with $1,677 at risk

FXStreet Insights Team FXStreet

Gold price witnesses a brief pullback before resuming the next downtrend. As FXStreet’s Dhwani Mehta notes, XAU/USD downside risks are intact towards $1,677.

Technical outlook for gold remains bearish

“Should the downside accelerate, a test of the 2021 low of $1,677 will be inevitable. The 14-day Relative Strength Index (RSI) still holds just above the oversold region, indicating more pain ahead.”

“The 21-Daily Moving Average (DMA) is set to cut the 50 DMA from above, which if confirmed on a daily closing basis will represent a bear cross. The bearish crossover will add credence to the ongoing losing streak in the metal.”

“Bulls will meet initial resistance at the previous day’s high of $1,711, above which the $1,720 round number could come into play. The July 22 low of $1,728 could challenge bearish commitments on the road to recovery.”

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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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