Gold price extends the downside consolidation phase into the second straight day on Wednesday. For how long can XAU/USD defend 50-Simple Moving Average on 4H? FXStreet’s Dhwani Mehta analyzes the pair’s technical outlook.

Gold price on the defensive

“A four-hourly candlestick closing below the mildly bullish 50-Simple Moving Average (SMA) at $1,770 is critical to unleashing further downside toward the 100SMA at $1,764. The rising trendline support at $1,761 will be next on sellers’ radars.”

“The Relative Strength Index (RSI) turns lower below the midline, backing the bearish potential in the near term.”

“If the bulls manage to defend the 50SMA support yet again, the Gold price could stage a modest comeback toward the downward-pointing 21SMA at $1,785. Buyers will try hard to seek acceptance above the $1,800 threshold.”