Gold Price Forecast: XAU/USD remains under pressure as 21DMA continues to cap

Nothing seems to have changed technically for gold price, as it continues to extend its struggle below the 21-Daily Moving Average (DMA) at $1,669. Will the yellow metal close above the latter? FXStreet’s Dhwani Mehta analyzes XAU/USD’s technical picture.

21DMA appears a tough nut to crack for XAU/USD bulls

“The 14-day Relative Strength Index (RSI) remains flatlined below the 50.00 level, suggesting that bears will likely retain control.”

“Bulls need a weekly close above the 21DMA to revive the recovery momentum from monthly troughs. Monday’s high at $1,671 will then come into play. The next relevant barriers are seen at the October 13 high of  $1,683 and the $1,700 mark.”

“Rejection at 21DMA once again will reopen the downside towards Wednesday’s low at $1,650, below which the weekly low at $1,638 will be retested. The last line of defense for buyers is envisioned at the monthly low of $1,617.”