Title : Gold Price Forecast: XAUUSD to regain bullish traction a a daily close above 100DMA at $1,71

November 9,2022 02:00 AM ET

By:AnalysisWatch

Gold prices are trading lower in early trading on Wednesday. Will the yellow metal regain critical resistance at the 100-day moving average of $1,717? FXStreet's Dhwani Mehta analyzes the XAUUSD chart.

The $1,700 mark could offer strong support.

"The 14-day Relative Strength Index is still holding above the midline, suggesting that the pullback is likely to be temporary and could offer a good buying opportunity for traders who may have missed the recent rally."

"A daily close above the critical 100DMA is needed to trigger further upside toward the October high of $1,730." Immediate resistances, however, are seen at the $1,710 round figure and multi-week highs at $1,717.

"To the downside, the $1,700 mark could offer strong support, below which a sharp drop towards the 50DMA at $1,674 cannot be ruled out." Before that, the previous week's high of $1,683 could come to the bulls' rescue.