Gold price is correcting from three-week highs of $1,682 at the start of the week this Monday. As FXStreet’s Dhwani Mehta notes, XAUUSD could retreat toward $1,650.

Any retracement in the price will likely be bought in

“Gold price confirmed a descending triangle formation after closing Friday above the falling trendline resistance at $1,650. XAUUSD price is challenging the %0-Daily Moving Averages (DMA) at $1,675 on its retreat, looking for a test of the 21DMA resistance-turned-support at $1,653, should the pullback extend.”

“The 14-day Relative Strength Index (RSI) has turned south but holds above the midline, suggesting that any retracement in the price will likely be bought in.”

“On the upside, buyers need to reclaim the previous day’s high at $1,682 in a bid to initiate a fresh rally towards the $1,700 mark.”