Gold price kicks off a fresh week on a downbeat note. XAU/USD’s daily chart favors bears as Russia-Ukraine peace talks offer a ray of hope, FXStreet’s Dhwani Mehta reports.

XAU/USD turns bearish with technicals

“Later in the day, the sentiment around the bond market and the incoming headlines from the scheduled peace talks will likely be the main market drivers, in absence of the top-tier US economic data releases.”

“Gold’s daily technical setup suggests that the tide has turned in favor of bearish traders, as the 14-day Relative Strength Index (RSI) has slipped gradually below the midline to now trade in the negative territory.”

“On renewed selling wave, gold price could retest four-day lows near $1,915, below which a fresh downside will open up towards the ascending 50-Daily Moving Average (DMA) at $1,900. Further down, sellers will aim for the previous week’s low of $1,890, which emerge as a tough nut to crack for them.”  

“Should the recovery pick up pace, Friday’s high of $1,940 will be put to test. The horizontal 21-DMA at $1,950 will be seen as the next relevant resistance level. The previous year’s high at $1,960 will be the level to beat for bulls.”