XAU/USD Technical Overview – 20, Oct

Gold price closed Wednesday below the rising trendline support, then at $1,642, confirming a downside break.  The fresh downtrend opens doors for a test of the 2022 lows at $1,615 before the $1,600 threshold can be probed. The 14-day Relative Strength Index (RSI) is lurking below the midline, keeping the downside potential intact.

On the flip side, any recovery attempt could test the previous trendline support turned resistance, now at $1,647. The next upside target is seen at intermittent lows at around $1,660. Bulls will then yearn for acceptance above the mildly bearish 21-Daily Moving Average (DMA) at $1,666.

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