Gold Price Forecast: XAU/USD needs acceptance above $1,730-$1734 to regain traction

Gold price turns south after Friday’s rebound. XAU/USD could regain traction on a sustained move above $1,730-$1734, FXStreet’s Dhwani Mehta reports.

Support at $1,708 could likely limit the decline

“The recovery from six-week lows could regain traction on a sustained move above the $1,720 round number, above which the $1,730-$1,734 supply zone could come into play. The area is the confluence of the recent range highs and the bearish 21-Daily Moving Average (DMA). Further up, the 50-DMA at $1,742 will be a tough nut to crack for bulls.”

“On the downside, the channel resistance-turned-support at $1,708 could likely limit the decline. The next cushion is seen at the $1,700 threshold, below which the rising trendline support of $1,695 will be challenged.”