Gold price is seen in the red for the first time this week. In the view of FXStreet’s Dhwani Mehta, the yellow metal could extend its slide towards the lowest level seen this year at $1,615.

XAU/USD gearing up for a big breakdown towards $1,615

“The new support, in the rising trendline, now at $1,642, still appears at risk amid a bearish 14-day Relative Strength Index (RSI).”

“Sellers continue guarding the mildly bearish 21-Daily Moving Average (DMA) at $1,669. A sustained break above the latter on a daily closing basis is needed to initiate a meaningful recovery towards the $1,700 barrier. The immediate resistance, however, is seen at the previous intermittent lows at around $1,660.”

“Acceptance below the $1,640 demand area is critical to kicking off a fresh downswing towards en-route the $1,600 threshold. Ahead of that, the 2022 lows of $1,615 will challenge bearish commitments.”