Title: Gold Price Forecast: XAU/USD recalls bears as fails to settle above $1,750
Aug 24, 2022 03:35AM ET
Gold price is treading water below $1,750 so far this Wednesday. XAU/USD is seen at a critical juncture as bull-bear tug-of-war could set in.
XAU/USD bears return after rejection above $1,750
The 14-day Relative Strength Index (RSI) is turning south once again while below the midline, suggesting that the downside pressure could build up in the sessions ahead.
Adding credence to the bearish bias, the 50-Daily Moving Average (DMA) is fast approaching the 21 DMA from above.
A sustained break below the Fibonacci Retracement (Fibo) level of the recovery from yearly lows of $1,681 to the August 10 high of $1,808 at $1,729 will open up the downside towards the $1,700 mark.
Bulls need a daily closing above the $1,750 psychological level, above which the 38.2% Fibo resistance at $1,760 will be probed. Further up, the meeting point of the 21 and 50 DMAs at $1,769 will be a tough nut to crack for XAU bulls.
A clear upside break of the two-week-old descending trend line keeps XAU/USD buyers hopeful amid a firmer. However, the MACD signals a mildly negative and hence the immediate hurdle surrounding the 100-HMA and the 200-HMA, respectively near $1,748 and $1,764, will be important for the gold price upside to watch.
If the quote rises past $1,764, the mid-August high near $1,785 will be an important hurdle to watch before welcoming XAU/USD bulls.
On the contrary, pullback remains elusive until the quote stays beyond the previous resistance line from August 12, around $1,737 by the press time.
If at all the gold price weakens past $1,737, the south-run towards the monthly low near $1,727 appears imminent.