Gold Price Forecast: XAU/USD to extend its decline on a daily close below 50 DMA at $1,784

Gold price is extending its retreat from one-month highs of $1,808. The yellow metal is at risk of falling below the 50-Daily Moving Average (DMA) support at $1,784, FXStreet’s Dhwani Mehta reports.

Bear cross in play

“Daily closing below the bearish 50-Daily Moving Average (DMA) at $1,784 will extend the corrective decline towards the $1,770 round figure, below which the $1,750 support zone will be tested again.”

“The 100 and 200 DMA bear cross is playing out and weighing negatively on the bright metal even though the 14-day Relative Strength Index (RSI) still remains above the midline.”

“On the upside, acceptance above the $1,800 mark is critical to resume its recovery momentum. The monthly high at $1,808 and the July 5 high at $1,812 will be next on buyers’ radars.”