Gold Price Forecast: XAU/USD’s technical outlook shows bearish bias stays intact with some room for correction.

Gold broke below $1,700 and lost more than 2% on a weekly basis. As FXStreet’s Eren Sengenzer notes, gold’s technical outlook shows that the bearish bias stays.  

Daily close above $1,700 could open the door for an extended recovery 

“Gold touched the lower limit of the descending regression channel coming from March on Friday and the Relative Strength Index (RSI) indicator on the daily chart rebounded from 50, suggesting gold is in a correction phase while staying bearish.”

“On the upside, $1,680 (mid-point of the descending channel, former support) aligns as the next hurdle ahead of $1,700 (psychological level, static level). A daily close above the latter could attract additional buyers and open the door for an extended recovery toward the upper end of the regression channel at $1,720, where the 20-day SMA is also located.”

“Interim support is located at $1,665 (static level) ahead of $1,654 (September 16 low) and $1,640 (static level from April 2020).”