Gold price resumes recovery. Will XAU/USD find acceptance above 23.6% Fibo resistance? FXStreet’s Dhwani Mehta analyzes the pair’s technical picture.

XAU/USD extends gains above 23.6% Fibo level, will it last?

“Gold bulls are trying their luck once again, as they recapture the $1,716 barrier, which is the 23.6% Fibonacci Retracement level of the latest decline from the August 10 peak of $1,808. Failure to resist above the latter will reinforce selling interests, calling for a revisit to Monday’s low of $1,708. The next cushion is seen at the $1,700 mark, below which the six-week low of $1,689 could be put to test once again.”

“If the recovery momentum extends, then bulls will challenge the 38.2% Fib level at $1,734 on a sustained move above the daily high of $1,727 and the $1,730 round figure.”