Gold Price Forecast: XAUUSD has more room on the downside

Gold closed the third straight week in negative territory. As FXStreet’s Eren Senfgezer notes, the technical outlook shows that the bearish bias stays intact in the short-term.

Gold is likely to find it difficult to stage a convincing rebound

“The Relative Strength Index (RSI) indicator on the daily chart stays near 40, suggesting that gold remains bearish and has more room on the downside before turning technically oversold. Sellers, however, might stay on the sidelines until XAUUSD makes a daily close below $1,800 (psychological level). In that scenario, $1,780 (static level) aligns as the next bearish target ahead of $1,767 (static level).”

“On the upside, $1,810 (static level, former support) aligns as first technical hurdle before $1,832 (20-day SMA). The descending trend line coming from early March stays intact and forms stiff resistance at $1,840, where the 200-day SMA is located.”