Gold Price Forecast: Sellers look to continue to dominate XAU/USD's action

Gold failed to make a daily close above the 20-day SMA despite having tested that level twice earlier in the week. As FXStreet’s Eren Sengezer notes, the near-term technical outlook reveals a lack of buyer interest.

Drop below $1,620 could trigger a technical selloff

“The Relative Strength Index (RSI) indicator on the daily chart turned south and declined toward 40 after meeting resistance at around 50, suggesting that sellers look to retain control of gold’s action.”

“On the downside, $1,620 aligns as critical support. A drop below that level could trigger a technical selloff and cause XAU/USD to slide toward $1,600 and $1,575 .”

“If XAU/USD makes a daily close above $1,670 (20-day SMA) and manages to stabilize, it could target $1,680 (50-day SMA), $1,700 and $1,720.”