Gold price is looking to extend the previous weakness while defending the $1,950 level so far this Thursday. FXStreet’s Dhwani Mehta analyzes XAU/USD’s technical outlook.

XAU/USD at a critical juncture

“Gold price is challenging the critical rising trendline support at $1,953, which if broken on a daily closing basis will confirm a down break from the pennant. The next strong support for Gold bulls awaits at the $1,940 round level, below which the previous week’s low at $1,935 will be a tough nut to crack for bears. Further south, Gold sellers will aim for a test of the bullish 21-Daily Moving Average (DMA) at $1,916.”

“If Gold price bounces off the a$1,953 trendline support, then a fresh run-up toward the static resistance at $1,975 cannot be ruled out. Buyers will then look out for the weekly high at $1,981 on their way to the $2,000 psychological level.”

See – Gold Price Forecast: XAU/USD to retest record highs of 2020 and 2022 on a break past $2,000/10 – Credit Suisse