Gold Price Forecast: XAUUSD needs to break out of the $1,875-$1,840 range to determine its next direction

Gold remains on track to close the third straight week higher. However recent price action suggests that XAUUSD could find it difficult to make a decisive move in either direction unless it breaks out of the $1,840-$1875 range, FXStreet’s Eren Sengezer reports.

Gold Price defines breakout levels

“The Fibonacci 38.2% retracement of the latest downtrend seems to have formed stiff resistance at $1,875. With a daily close above that level, gold could target the $1,890/$1,900 area (100-day SMA, 50-day SMA, Fibonacci 50% retracement) and $1,915 (Fibonacci 61.8% retracement) afterwards.”

“$1,850 (Fibonacci 23.6% retracement) aligns as interim support before $1,840 (200-day SMA). In case the latter turns into resistance, this could be seen as a significant bearish development and attract sellers. In that scenario, additional losses toward $1,830 (June 1 low) could be witnessed.”