Gold Price Forecast: XAU/USD to drop further on a daily close below critical support at $1,961

Gold price kicks off the week on the wrong foot. Daily close below the critical rising trendline support, now at $1,961, would trigger a fresh downswing, FXStreet’s Dhwani Mehta reports.

Tide turns in favor of XAU/USD bears

“Gold bears need a daily candlestick closing below critical rising trendline support at $1,961 to confirm a downside break from a two-week-old pennant formation. If that materializes, then a fresh downswing toward the previous week’s low of $1,944 cannot be ruled out. Further south, the static support at $1,935 will come into play.”

“In case the Gold price recovery is initiated, bulls will need to recapture the aforesaid trendline support at $1,961 on a sustained basis. The next upside target is seen at the $1,970 round figure. The falling trendline resistance at $1,993 will be a tough nut to crack for Gold optimists.”