XAUUSD Technical Outlook

Gold price has now found acceptance below the $1,700 round-figure mark and seems vulnerable to slide further. Some follow-through selling below the August 2021 low, around the $1,687-$1,686 region, would reaffirm the negative bias and drag the XAUUSD to the $1,677-$1,676 area. The latter represents the 2021 year low and is followed by the $1,670 horizontal support, below which the metal is likely to prolong its downward trajectory.

On the flip side, any meaningful recovery beyond the $1,700 mark is likely to attract fresh sellers and remain capped near the $1,710-$1,712 supply zone. The next relevant hurdle is pegged near the $1,725-$1,726 region, which if cleared could trigger a bout of a short-covering. The gold price could then aim to surpass the $1,734-$1,735 horizontal resistance and test the $1,749-$1,752 strong barrier.

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