Gold Price Forecast: XAUUSD could see a minor correction given oversold conditions

Gold Price risks a minor pullback amid oversold conditions. As FXStreet’s Dhwani Mehta notes, the yellow metal awaits Tuesday’s closing for bear flag confirmation.

XAUUSD remains oversold, focus on Tuesday’s close

“Bears need a daily closing below the rising trendline support of $1,733 to validate the bear flag. If the bearish continuation pattern materializes, a test of the $1,700 mark remains inevitable.”

“Gold sellers will need acceptance below the $1,722 demand area to unleash the additional downside.”

“The 14-day Relative Strength Index (RSI) is inching lower within the oversold territory, suggesting a brief rebound could be in the offing.” 

“A sustained break above the daily highs of $1,745 will revive the bullish interests, with sight on the $1,750 psychological level. The further upside could challenge the rising trendline resistance at $1,754, which if scaled could kick off a bullish reversal.”