Gold Price Forecast: XAU/USD bulls to take a breather before targeting $1,900

Gold price is consolidating the two-day uptrend near the highest level in eight months at $1,880. XAU/USD could take a breather before recapturing $1,900, FXStreet’s Dhwani Mehta reports.

A retreat toward the $1,865 support could be in the offing

“Gold has paused its advance, as the Relative Strength Index (RSI) is flirting with the overbought territory, warranting caution for bulls.”

“Recapturing the multi-month high at $1,880 is critical to targeting $1,900 once again. Daily closing above the latter is needed to extend the bullish reversal.”

“If Gold sellers take out support at $1,865, then a fresh drop toward the bullish 21-Simple Moving Average (SMA) at $1,853 cannot be ruled out.”