Gold lost more than 3% on a weekly basis. As FXStreet’s Eren Sengezer notes, the technical outlook suggests there could be a correction before the next leg lower.

Sellers are likely to dominate gold's action while below $1,800

“The Relative Strength Index (RSI) indicator on the daily chart dropped into the oversold territory below 30. The last time the daily RSI fell below in August 2021, XAUUSD staged a technical correction and a similar action could be expected in the short term.”

“On the upside, $1,765 (former support, static level) aligns as first technical resistance ahead of $1,790 (former support, static level). A daily close above the latter could open the door for an extended recovery toward $1,800, where the descending trend line coming from early March and the 20-day SMA is located. 

“As long as the $1,800 level stays intact, however, sellers are likely to dominate gold's action following the correction.”

“On the downside, $1,730 (July 8 low) forms interim support ahead of $1,720 (static level) and $1,700 (psychological level).”