Gold price is making a minor recovery attempt from the near strong support of $1,795. But Thursday’s close below the horizontal 100-Daily Moving Average (DMA) at $1,795 points to more downside in the making, FXStreet’s Dhwani Mehta reports.

XAU/USD not out of the woods yet

“Thursday’s closing below the 100-DMA at $1,795 provides the extra zest to XAU sellers. Any retracement from lower levels will face initial hurdle at the bearish 50-DMA of $1,802, above which the flattish 200-DMA at $1,806 will come into the picture. Recapturing the 21-DMA at $1,818 is critical to negating the bearish momentum in the near-term.”

“With the 14-Relative Strength Index (RSI) still below the midline, the downside bias appears well in place. The next significant target for gold bears is seen at $1,783, the January lows. A firm break below the latter will accelerate the sell-off towards $1,750.”

See – Gold Price Forecast: XAU/USD to open up support at $1,691/76 on removal of $1,759/54 – Credit Suisse