Gold Price Forecast: Risks remain skewed to the downside for XAU/USD

Gold price turns cautious. As FXStreet’s Dhwani Mehta notes, the downside appears more compelling.

Daily closing above $1,718 to confirm a bearish reversal in the near term

“Gold price is challenging the critical daily trendline resistance at $1,718, which has capped the recovery for now. Daily closing above the latter is needed to confirm a bearish reversal in the near term. The next upside hurdle is seen at around $1,720 the round figure. Further up, the August 31 high of $1,727 will come into play.”

“A sustained move below the $1,700 mark is critical to unleashing the additional downside. On a breach of the strong support of around $1,690, sellers will again target the 2022 low of $1,681.”