Gold Price Forecast: XAU/USD on track to test $1,600 as technical setup favors sellers

Gold price extends weakness. XAU/USD eyes a sustained break below $1,615 toward the $1,600 level, FXStreet’s Dhwani Mehta notes.

Sellers alive and kicking

“Bears now gather strength to take out the 2022 lows at $1,615, paving way for a test of the $1,600 round figure.”  

“The 14-day Relative Strength Index (RSI) is pointing south towards the oversold territory while below the midline, suggesting that there is more room to the downside.”

“Bulls could attempt a dead cat bounce to the $1,630 level, above which a fresh upswing towards the $1,650 resistance cannot be ruled out. The mildly bearish 21-Daily Moving Average (DMA) at $1,663 will be next on buyers’ radars.”