Gold Price Forecast: XAU/USD could extend its range play below the critical $1,670 barrier

Gold price keeps its recovery mode intact. However, the mildly bearish 21-Daily Moving Average (DMA) at $1,670 continues to limit the upside attempts, FXStreet’s Dhwani Mehta reports.

XAU/USD defends the new support around $1,640, but for how long?

“The immediate upside barrier is seen at the previous intermittent lows around $1,660, above which the $1,670 key resistance will be retested. Unless bulls manage to find a strong foothold above the latter, any recovery attempts in the bright metal would be easily sold-off.”

“Sellers need a daily candlestick closing below the $1,640 demand area to kick off a fresh downswing towards the 2022 lows of $1,615. The last line of defense for bulls is envisioned at the $1,600 mark.”