Gold Price Forecast: XAUUSD to extend its range play around 200 DMA

Gold Price is attempting a minor recovery above the critical 200-Daily Moving Average (DMA) support now turned resistance at $1,843. In the view of FXStreet’s Dhwani Mehta, XAUUSD is set to extend its struggle around this region.

Upside attempts are likely to have limited legs

“Having recaptured the key 200 DMA barrier at $1,843, gold bulls are struggling to reclaim ground above the horizontal 21 DMA, now at $1,848. A firm break above the latter will put the $1,850 psychological mark to test. Up next, the recent rage highs near $1,858 will test the bearish commitments if bulls manage to flex their muscles.”

“On the downside, the immediate support is likely to emerge at Friday’s low of $1,834, below which XAU bears will aim for the $1,830 round figure. A sharp sell-off could be on the cards on a sustained move below the latter, exposing June 16 low of $1,816. The last line of defense for gold buyers is seen at the rising trendline support at $1,810.”