From a technical perspective, the price of gold has struggled to find acceptance below the $1,700 round for the time being. This in turn calls for some caution for bearish traders and before positioning for any further declines. As such, the metal's failure to gain significant traction suggests that the selling trend may not be over in the long term and risks remain on the downside. Therefore, any move to test recovery is likely to be resistance in the $1,725-$1,726 area.
A horizontal barrier of $1,734-$1,735 follows, where a fight in short-covering XAUUSD could push the $1,749-$1,752 supply zone. On the other hand, weakness below the overnight swing low around $1,698-1,697 seems to be a new trigger for bearish traders and will make XAUUSD weaker. The gold price could accelerate the fall to the September 2021 low and hit the $1,787-$1,786 region. The downward trajectory could extend further after testing the 2021 annual low near the $1,677-$1,676 range.
A horizontal barrier of $1,734-$1,735 follows, where a fight in short-covering XAUUSD could push the $1,749-$1,752 supply zone. On the other hand, weakness below the overnight swing low around $1,698-1,697 seems to be a new trigger for bearish traders and will make XAUUSD weaker. The gold price could accelerate the fall to the September 2021 low and hit the $1,787-$1,786 region. The downward trajectory could extend further after testing the 2021 annual low near the $1,677-$1,676 range.