Gold Price Forecast: XAUUSD poised for a sustained move below the 200-DMA at $1,836
|Gold Price tested offers below the critical 200-Daily Moving Average (DMA) at $1,836 on Wednesday, although bulls defended the latter allowing an impressive recovery. For how long can the 200-DMA support hold? FXStreet’s Dhwani Mehta notes that XAU/USD’s bearish potential remains intact.
Daily technical setup continues to point to the downside for XAU/USD
“The renewed upside in XAU/USD seems to be fading this Thursday, as the price is looking to surrender the previous week’s low and the psychological level at $1,850. If the downside accelerates then a retest of the 200-DMA at $1,836 will be inevitable.”
“Daily closing below the 200-DMA at $1,836 is critical to unleashing more declines towards the February 10 lows of $1,822. The next key support is seen at the $1,800 round figure.”
“Acceptance above Tuesday’s high of $1,865 is needed for gold bulls to cement a meaningful recovery towards the horizontal 100-DMA at $1,884. Further, the $1,900 mark will challenge the bearish commitments.”
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