Gold price is resuming its downtrend. In the view of FXStreet’s Dhwani Mehta, XAU/USD stays directed towards $1,712.

Any recovery attempts will need to find acceptance above $1,741

“Sellers need to take out the monthly lows of $1,720 to extend the bearish momentum towards the July 27 low of $1,712. Failure to sustain above the latter will open doors for a test of the $1,700 level.”

“On the upside, any recovery attempts will need to find acceptance above the rising trendline support turned resistance at $1,741. Bulls will eye the $1,750 psychological level as the next upside hurdle. Friday’s high of $1,759, around where the bearish 50-Daily Moving Average (DMA) lurks, will be the level to beat for XAU buyers.”