Gold price is looking to extend the previous sell-off. As FXStreet’s Dhwani Mehta notes, XAU/USD remains on track to test $1,600.

Any recovery attempt could test $1,647

“The fresh downtrend opens doors for a test of the 2022 lows at $1,615 before the $1,600 threshold can be probed.”

“The 14-day Relative Strength Index (RSI) lurks below the midline, keeping the downside potential intact.”

“Any recovery attempt could test the previous trendline support turned resistance, now at $1,647. The next upside target is seen at intermittent lows at around $1,660. Bulls will then yearn for acceptance above the mildly bearish 21-Daily Moving Average (DMA) at $1,666.”