Gold Price Forecast: XAU/USD's technical picture points to a loss of bullish momentum

Gold was largely unchanged last week. XAU/USD‘s technical outlook points to a slightly bullish bias in the short term, FXStreet’s Eren Sengezer reports.

$1,720 forms strong support

“Gold seems to have lost its bullish momentum following last week's action with the Relative Strength Index (RSI) indicator on the daily chart retreating slightly below 60. Nevertheless, XAU/USD holds comfortably above the 20-period Simple Moving Average (SMA), suggesting that sellers remain on the sidelines for the time being.”

“$1,780 aligns as initial resistance. With a daily close above that level, XAU/USD could test $1,800 and target $1,830 if it clears that resistance.”

“On the downside, $1,720 forms strong support ahead of $1,700.”