Although 50-SMA restricts the immediate downside of the gold price to around $1,713, bearish MACD signals and the 100-SMA challenge the XAU/USD buyers unless crossing the $1,727 hurdle.

Even so, 50% and 61.8% Fibonacci retracements of July 04-21 fall, around $1,748 and $1,764 in that order, challenges the metal buyers before giving them control.

On the contrary, a clear downside of the 50-SMA support near $1,713 isn’t an open invitation to the gold sellers as a two-week-old horizontal support zone around $1,697-98 probes the metal’s additional south-run before directing the bears to the yearly low of $1,680.

It should be noted, however, that the metal’s weakness past $1,680 could make it vulnerable to test the 61.8% Fibonacci Expansion (FE) of July 04-22 moves, near $1,655.