Gold price surrendered all of Tuesday’s gains, eroding $60 amid a sharp correction. Is the XAU/USD correction over yet? $1,960 is a make-or-break point for buyers, FXStreet’s Dhwani Mehta reports.

Warranting caution for bulls

“There remains some room for sellers to test the critical support at $1,960, which is the confluence of the ascending 50-Simple Moving Average (SMA) and rising trendline support. Four-hourly candlestick closing below the latter will initiate a fresh downswing towards the bullish 100-SMA at $1,930. Further south, the $1,900 round level will come to the rescue of gold bulls.”

“If the upside resumes traction, then the immediate hurdle is seen at the $2,000 psychological mark. The next bullish target is envisioned at the horizontal 21-SMA at $2,006, above which bulls could attempt a fresh run-up towards $2,050. The record highs of $2,075 still remain a tough nut to crack for XAU buyers.”

See – Gold Price Forecast: XAU/USD to post new record highs towards $2,285/2,300 – Credit Suisse