Gold Price Forecast: XAU/USD bears await a short-term trading range breakdown
Short-term technical outlook
From a technical perspective, nothing seems to have changed much for the commodity and the two-way price action warrants some caution before placing aggressive directional bets. That said, repeated failures to find acceptance at higher levels support prospects for a further near-term decline. However, a sustained breakthrough a near two-week-old trading range support is needed to confirm the negative bias.
Sustained weakness below the $1720 area will be seen as a fresh trigger for bearish traders and turn the commodity vulnerable to accelerate the slide towards the $1700 mark. The breakdown momentum could further get extended and drag the metal back towards testing multi-month lows, around the $1677-76 region touched earlier this month.
On the flip side, the $1744-45 region might continue to act as a strong barrier and is followed by the post-FOMC highs, near the $1755 level ahead of the $1760 strong support breakpoint. The latter coincides with 200-period SMA on the 4-hourly chart, which if cleared decisively might trigger a short-covering move. The precious metal might then surpass an intermediate barrier near the $1773-75 region and aim to reclaim the $1800 mark.
Reference: FXStreet
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