Gold Price Forecast: XAU/USD sees downside opening up toward $1,870

Gold price is on a three-day corrective decline. XAU/USD eyes further correction toward $1,870 amid bearish technicals, FXStreet’s Dhwani Mehta reports.

Gold buyers have given up control

“Gold price yields a downside break of a symmetrical triangle on the four-hour chart as XAU/USD breached the rising trendline support at $1,907 validating the triangle breakdown.”

“The downside remains exposed toward the $1,870 previous critical support should the bullish 50-Simple Moving Average (SMA) at $1,890 cave in.”

“Recapturing the triangle support-turned-resistance is critical to resuming the recent uptrend. The next key upside target is seen at the mildly bullish 21SMA at $1,911, which coincides with the triangle resistance. Gold price could accelerate toward the $1,920 round figure on a sustained bullish momentum.” 

See – Gold Price Forecast: XAU/USD rally seems overstretched over the near term – HSBC