Gold Price Forecast: XAU/USD recovery fades below 21-DMA at $1,847

Gold price is back in the red for the first time in four trading days. XAU/USD sellers could extend control after rejection near 21-Daily Moving Average (DMA), FXStreet’s Dhwani Mehta reports.

XAU/USD turns south after rejection below the 21-DMA hurdle

“The extension of the upside break from a falling wedge lost legs just below the descending 21-DMA, now at $1,847.”

“The Gold price retracement could test the previous day’s low at $1,823 on a sustained move below the $1,830 immediate support. Deeper declines could threaten the confluence support at around $1,795, where the falling wedge resistance-turned-support and the bullish 100-DMA merge.”

“On the flip side, the previous day’s high at $1,845 could act as the immediate upside barrier. Recapturing the bearish 21-DMA is critical for the recovery to regain its momentum. The next critical resistance is envisioned at the mildly bullish 50-DMA at $1,857.”

See – Gold Price Forecast: XAU/USD to find a floor above its 200-DMA at $1,775 – Credit Suisse