Gold Price Forecast: XAU/USD needs acceptance above 21DMA to confirm bullish reversal
Gold price is looking to build on to the previous recovery from sub-$1,650 levels. Will XAU/USD regain hold above 21DMA? FXStreet’s Dhwani Mehta analyzes the yellow metal's technical picture.
Initial support aligns at $1,650
“Gold price is looking to test the 21-Daily Moving Average (DMA) at $1,668 on the road to recovery. Daily closing above the latter will confirm a bullish reversal from near 2022 lows of $1,615. The next upside barrier is seen at Monday’s high of $1,671. Further up, buying resurgence will be seen above the October 13 high at $1,683, as buyers target the $1,700 threshold.”
“On the downside, the $1,650 psychological support will be challenged, at first. It’s critical for bulls to defend the previous day’s low of $1,638. A breach of the last will reopen the downside towards $1,600.”