Gold Price Forecast: XAU/USD appears supported so long as above the 21DMA at $1,772

Gold price is rebounding toward the $1,800 mark, snapping a two-day corrective decline, amid an impending Bull Cross, FXStreet’s Dhwani Mehta reports.

Daily closing below 21DMA is critical to negate the bullish thesis

“Gold has found buyers once again near the mildly bullish 21-Daily Moving Average (DMA) at $1,772, prompting a tepid bounce toward the bearish 200DMA at $1,787. A sustained break above the latter is needed to extend the recovery momentum toward the $1,800 level. The next upside target is envisioned at the previous day’s high of $1,809.”

“Adding credence to the bullish potential, the upward-sloping 50DMA is set to cut the flattish 100DMA from below, which if materialized on a daily closing basis will confirm a Bull Cross.”

“On the flip side, a sharp drop toward the previous week’s low at $1,766 will be on cards if Gold bears flex their muscles below the 21DMA. Further south, the November-end lows near $1,740 could be on Gold sellers’ radars.”