Gold Price Forecast: XAU/USD’s daily closing below 21-DMA to pave way for more declines

Gold price is consolidating the downside near weekly lows of $1,660. XAU/USD could threaten $1,650, in the view of FXStreet’s Dhwani Mehta.

Gold price remains vulnerable

“Bears are likely to retain control below the 21-Daily Moving Average (DMA) support, now at $1,675, as the 14-day Relative Strength Index (RSI) continues to inch lower below the midline.”

“A sustained break below the intermittent support of $1,660 could put the $1,650 psychological level under threat. Sellers could then probe the September 29 low of $1,642.”

“Buyers need to find a strong foothold above the 21-DMA on a daily closing basis to initiate any meaningful recovery. The $1,700 threshold is seen as the next upside target, above which the $1,710 round figure will be challenged.”