Gold price failed to break above $1,800 in August, with the downtrend continuing. Key supports of $1,700 and $1,675 have been broken. Strategists at ANZ Bank expect XAU/USD to dive towards $1,600.

Bearish trend is likely to continue

“A weekly close below $1,675 could trigger a heavy sell-off next week. That said, the price could consolidate after Thursday’s sell-off, ahead of the FOMC meeting on 21 September.” 

“Bears could extend downside price moves to $1,600 and below.” 

“Immediate resistance lies at $1,700 and a break of this level would put the next resistance point at $1,735. While reversal of the trend could be possible if prices break critical level of $1,800.”