Gold (XAU/USD) extends Friday’s bearish momentum into a fresh week this Monday. XAU/USD’s technical set up favors bears, and a test of $1800 looks inevitable, FXStreet’s Dhwani Mehta reports.
“Amid holiday-thinned light trading, gold traders will closely follow the performance of the platinum group metals (PGMs). Also, geopolitical tensions in the Middle East could be in focus, as the Saudi-led coalition fighting in Yemen intensifies.”
“A test of the Feb 8 low of $1808 remains inevitable, below which the January 18 low of $1803 could be challenged. The relative strength index (RSI) at 48.57 also points to more downside in the offing.”
“Recapturing the powerful barrier at $1827 is critical to reviving the recovery momentum. That level is the confluence of the falling trendline resistance, 200 and 50-HMAs. The horizontal 100-HMA at $1834 is the next relevant upside target for the XAU bulls.”