Gold Price Forecast: XAU/USD needs to hold above $1,935 to avoid further losses

Heading into a new week this Monday, gold price is back in the red zone. As FXStreet’s Dhwani Mehta notes, $1,935 holds the key for XAU/USD.

XAU/USD faces stiff resistance at 38.2% Fibo level while 23.6% Fibo support could cap the losses

“The next crucial support is seen at the 23.6% Fibo level at $1,935. A firm break below the latter will open floors towards the previous week’s low of $1,910. Further south, powerful support near $1,895 will challenge the bullish commitments.”

“If bulls manage to find a strong foothold above the 38.2% Fibo level at $1,961, then a test of the previous week’s high at $1,966 will be inevitable. Gold buyers will then target the $1,970 round level, above which the 50% Fibo level at $1,982 will be threatened.”