Gold price is attempting a tepid bounce so far this Wednesday. But the rebound in the yellow metal appears shallow. FXStreet’s Dhwani Mehta notes that the $1,806 support holds the key.

Gold remains vulnerable while within a symmetrical triangle on the 4H chart

“A sustained move below the 100-DMA at $1,811 will fuel a fresh decline towards the rising trendline support at $1,806. Gold will chart a symmetrical triangle breakdown on a four-hourly candlestick closing below the latter, opening floors for a test of the upward-sloping 200-SMA at $1,800.”

“The last line of defense for gold buyers is seen at the January 10 lows of $1,790.”

“Recapturing the bullish 50-SMA at $1,814 is critical for attempting any meaningful recovery. The downward-pointing 21-SMA at $1,818 will then get tested, above which the falling trendline resistance at $1,821 will be eyed. Further north, the previous day’s high of $1,823 will act as the next relevant upside barrier.”

See – Gold Price Forecast: XAU/USD to sink towards $1,650 by end-2022 – UBS