XAU/USD Technical Outlook- 5, Dec

Gold price is retreating to test the critical 200-Daily Moving Average (DMA) at $1,796, at the time of writing.

Gold bulls reclaimed that barrier for the first time since mid-June on Thursday.

The 14-day Relative Strength Index (RSI) has turned flat just beneath the overbought territory, justifying the latest leg down in Gold price.

Should the 200DMA resistance-turned-support give way, then a drop toward the November 15 high at $1,787 cannot be ruled out.

The next corrective target is seen at the previous day’s low of $1,768, below which floors will open up for a test of the bullish 21DMA at $1,749.

Alternatively, Gold buyers year for a weekly closing above the 200DMA, above which the $1,800 mark will be challenged once again.

Further up, the previous day’s high at $1,805 and the August 10 top at $1,808 will be put to test.

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