Gold price sees pullback before targeting $1,804 support, FXStreet’s Dhwani Mehra reports.

Risks skewed to the downside

“Gold price has finally yielded a downside break, on a daily closing basis, from the critical horizontal trendline support from the January 5 low at $1,825. The breakdown has re-opened floors toward the $1,800 threshold. However, Gold bears will need to take out the seven-week low of $1,819 and the falling trendline support at $1,804 beforehand.”

“On the flip side, the $1,850 psychological level need to be scaled on a sustained basis to revive the bullish interests. The intraday high at $1,831 and the last Friday’s high at $1,848 could make it a tough road for Gold buyers on a potential recovery attempt.”

See – Gold Price Forecast: XAU/USD starts to look oversold, time to buy? – Standard Chartered