Gold Price Forecast: XAU/USD looks south amid bearish technicals

Gold price has faced stiff resistance at 21-Daily Moving Average (DMA), now at $1,669. Technical setup points to XAU/USD weakness, FXStreet’s Dhwani Mehta reports.

Gold price extends its struggles with the 21DMA

“Failure to find acceptance above the 21DMA at $1,669 will call for a test of the previous day’s low at $1,650. The next cushion is seen at Tuesday’s low of $1,638. Selling pressure will likely intensify below the latter, opening floors for a fresh drop towards the monthly low of $1,617.”

“Alternatively, bulls must find a firm foothold above the 21DMA to extend the renewed uptrend. Further up, Monday’s high at $1,671 will come into play. The next upside target is placed at the October 13 high of  $1,683 en-route the $1,700 threshold.”