Gold price is turning lower in early Wednesday’s trading. Will the yellow metal reclaim the critical 100-Daily Moving Average resistance at $1,717? FXStreet’s Dhwani Mehta analyzes XAUUSD’s chart. 

The $1,700 mark could offer strong support

“The 14-day Relative Strength Index (RSI) still holds above the midline, suggesting that the pullback is likely to be temporary and could offer a good buying opportunity to traders who might have missed out on the recent rally.”

“Daily closing above the critical  100DMA is needed to unleash further upside toward the October high at $1,730. The immediate resistances, however, are seen at the $1,710 round figure and the multi-week highs at $1,717.”

“On the downside, the $1,700 mark could offer strong support, below which a sharp drop toward the 50DMA at $1,674 cannot be ruled out. Ahead of that, the previous week’s high at $1,683 could come to the rescue of bulls.”