Gold Price Forecast: XAU/USD 200DMA amid bearish wedge in play

Gold price drops from $1,800. Will XAU/USD defend the 200-Daily Moving Average? FXStreet’s Dhwani Mehta analyzes the pair’s technical outlook.

Gold sellers in control

 “The bearish wedge pattern remains in play, keeping Gold sellers in control, as the price closes in on the critical 200DMA at $1,788. Daily closing below the latter is needed to confirm a correction. The next downside cap is seen at the mildly bullish 21DMA at $1,772. A breach of the last will trigger a fresh sell-off toward the $1,750 psychological level.”

“On the upside, recapturing the $1,810 barrier will call for a retest of the previous day’s high at $1,814. Further up, Gold bulls will target the wedge resistance at $1,825, where the multi-month high aligns.”