Gold price sees fresh demand. Nonetheless, XAU/USD appears a ‘sell the bounce’ trade near $1,670, FXStreet’s Dhwani Mehta reports.

Sellers remain in complete control

“Unless bulls manage to find a strong foothold above the mildly bearish 21-Daily Moving Average (DMA) at $1,670, any recovery attempts in the bright metal from two-week lows of $1,640 appear a dead cat bounce.”

“The immediate upside barrier is seen at the $1,650 level above which the previous intermittent lows around $1,660 could enact strong resistance.”

“Daily candlestick closing below the $1,640 demand area is needed for a fresh downswing towards the $1,600 mark. Ahead of that, the September low of $1,615 will challenge the bearish commitments.”