Gold price is higher on the day at the start of a new week. XAU/USD eyes $1,700 as next recovery target, FXStreet’s Eren Sengezer reports.

Daily close below $1,650 could be seen as a significant bearish development

“Gold faces immediate resistance at $1,680, where the 20-day SMA is located. In case the yellow metal rises above that level and starts using it as support, it could target $1,690 (Fibonacci 38.2% retracement of the latest downtrend) and $1,700 (psychological level).” 

“On the downside, $1,665 (Fibonacci 23.6% retracement) aligns as first support before $1,650 (static level). A daily close below the latter could be seen as a significant bearish development and cause XAU/USD to decline toward the end-point of the downtrend at $1,620.”