Gold Price Forecast: XAU/USD needs acceptance below 21 DMA to extend the downtrend

Gold price clings to 21-Daily Moving Average (DMA) at $1,764. A daily close below here would clear the way for further downside, FXStreet’s Dhwani Mehta reports.

The path of least resistance is south

“In Thursday’s trading so far, the price has breached the 21 DMA, now at $1,764, eyeing deeper declines. The immediate cushion is placed at the August 3 low of $1,754, below which the $1,750 psychological level will be tested.”

“Recapturing 21 DMA will be critical for bulls to hold ground. The next significant hurdle for buyers is aligned at the bearish 50 DMA at $1,777. Further, the wedge support-turned-resistance at $1,789 will come into play for the recovery to extend towards the $1,800 threshold.”