Gold Price Forecast: XAU/USD to plummet towards $1585 on a slide below $1677/70 – SocGen

Gold struggled to reclaim the hurdle at $1835 last month and has experienced a sharp down move testing the lower band of a steep descending channel. As strategists at Société Générale note, XAU/USD needs to stay above the $1677/1670 area to avoid a deeper dive.

Resistance is seen at $1792

“Low formed in March near $1677/1670 which is also the 38.2% retracement of the whole uptrend since 2015 is a crucial support zone. Defending this will be pivotal for averting a deeper downtrend. 

“Should the $1677/1670 break, next projections will be at $1625 and $1585.”

“Short-term hurdles are at $1792 and the recent peak of $1835.”