Gold Price Forecast: XAU/USD bulls to take the helm once anove $1,800

On Monday, gold price has extended Friday’s late rebound. In the view of FXStreet’s Dhwani Mehta, XAU/USD needs to find acceptance above $1,800 to negate the bearish bias.

Gold’s path of least resistance appears to the downside

“The latest developments surrounding the new variant combined with the market’s reassessment of the global tightening expectations will lead the sentiment, impacting the dollar’s as well as gold’s valuations. Investors will also look forward to the speeches from Fed Chair Jerome Powell and ECB President Christine Lagarde for fresh trading incentives.”

“The Relative Strength Index (RSI) is trading flatlined but below the 50 level, suggesting that the renewed upside could remain short-lived unless the metal finds acceptance above the $1,800 level.”

“Strong support awaits around $1,780, the previous week’s lower range, below which the November 3 low of $1,859 will be on the sellers’ radars.”

“On the flip side, the bulls need to hold the 21-SMA support at $1,793 for a fresh advance towards the horizontal 200-SMA at $1,809. The buyers will then look to retest Friday’s high of $1,816 if the rebound gathers steam going forward.”