Gold Price Forecast: XAU/USD to extend the downtrend on a dip under 21 DMA at $1,679

Gold price is at five-day lows below $1,700. XAU/USD looks to test the horizontal 21-Daily Moving Average (DMA) at $1,679 as the Relative Strength Index (RSI) pierces back below the 50.00 level, FXStreet’s Dhwani Mehta reports.

Recapturing $1,700 is critical to attempting any recovery

“The next stop for sellers is now seen at the horizontal 21 DMA at $1,679, below which intermittent support near $1,660 will come into play.”

“The 14-day RSI has gradually pierced through the midline for the downside, opening doors for more declines.”

“Recapturing the $1,700 threshold is critical to attempting any recovery. The next upside target is seen around the rising trendline support turned resistance at $1,707. The bearish 50DMA at $1,721 could restrict the additional rebound in the bullion.”