Gold Price Forecast: XAUUSD set to suffer further falls below $1,700

Gold, so far, has struggled to find acceptance below the $1,700 mark. That said, the metal’s inability to gain any meaningful traction suggests that risks remain skewed to the downside, FXStreet’s Haresh Menghani reports.

Near-term selling bias might still be far from being over

“Any attempted recovery move is likely to confront resistance near the $1,725-$1,726 region. This is followed by the $1,734-$1,735 horizontal barrier, above which a bout of short-covering could lift the XAUUSD towards the $1,749-$1,752 supply zone.”

“Weakness below the overnight swing low, around the $1,698-$1,697 area, would be seen as a fresh trigger for bearish traders and make the XAUUSD vulnerable. Gold could then accelerate the fall towards September 2021 low, around the $1,787-$1,786 region. The downward trajectory could further get extended towards testing the 2021 yearly low, near the $1,677-$1,676 area.”