Gold Price Forecast: XAU/USD's technical outlook points to a lack of recovery momentum

Last week, gold failed to preserve its bullish momentum and closed little changed below $1,720. In the view of FXStreet’s Eren Sengezer, gold’s near-term technical outlook points to a neutral/bearish bias.

$1,700 stays intact as significant support

“The Relative Strength Index (RSI) indicator on the daily chart is yet to reach 50, suggesting that XAU/USD has more correction room on the upside despite struggling to gather bullish momentum.”

“$1,740 (20-day SMA, 50-day SMA) aligns as key resistance. With a daily close above that level, additional gains toward $1,760 (Fibonacci 23.6% retracement of the latest downtrend) and $1,790 (100-period SMA) could be witnessed.”

“$1,700 (psychological level, end-point of the downtrend) stays intact as significant support. In case gold falls below that level and starts using it as resistance, bears could target $1,680 (July 21 low) and $1,675 (static support from March 2021).”