Gold price is trading just below the $1,800 threshold. In the view of FXStreet’s Dhwani Mehta, XAU/USD’s path of least resistance appears down as a break below the 100-day moving average (DMA) at $1,795 would allow room for more declines.
Sellers just have one key barrier in the 100-DMA to crack
“Bears are fencing the $1,795 area, where the horizontal 100-DMA aligns. A sustained break below here will call for a retest of the January 28 lows of $1,780. Once that is breached, the additional downside will target the December 16 troughs of $1,776. Further south, the $1,750 psychological barrier will be back on bears’ radars.”
“On the flip side, recapturing 50-DMA at $1,802on a daily closing basis is critical to take on the all-important 200-DMA once again, which is now at $1,806. Should the renewed upside hold, buyers will look out to test the confluence of the wedge support-turned-resistance and bearish 21-DMA at $1,815.”