Gold Price Analysis: XAU/USD to suffer a massive sell-off on a close below $1765

Gold (XAU/USD) is attempting a bounce from seven-month lows of $1761 but downside bias is still intact. XAU/USD bears eye daily closing below November 30 lows at $1765, FXStreet’s Dhwani Mehta reports.

Key quotes

“The gold price is at the brink of announcing a massive sell-off should sellers find acceptance below the November 30 low of $1765 on a daily closing basis. Stops could be triggered on a sustained move below the latter, exposing the June 2020 lows around $1720.” 

“The 14-day Relative Strength Index (RSI) lies just above the oversold territory, suggesting that there is room for further downside.”

“If the bulls manage to defend the crucial support, allowing the price to settle above that level, a corrective pullback towards the January low of $1803 cannot be ruled out.”