Gold Price Forecast: XAU/USD's technical outlook points to a bearish tilt

Gold closed every day of the week in negative territory and snapped a four-week winning streak. The near-term technical outlook shows sellers look to dominate XAU/USD's action, FXStreet’s Eren Sengezer reports.

Technicals point to a bearish tilt

“The Relative Strength Index (RSI) indicator on the daily chart fell below 50 and gold closed the last two trading days below the 20-day SMA.” 

“On the downside, the immediate support is located at $1,740 (static level) ahead of $1,720 (static level) and $1,700 (psychological level, the end-point of the latest downtrend).”

“The 20-day SMA aligns as interim resistance at $1,770 before $1,780 (50-day SMA, Fibonacci 23.6% retracement). In case the price rises above the latter and starts using it as support, $1,800 (psychological level) could be seen as the next recovery target.”