Gold Price Forecast: XAU/USD needs to stabilize above $1,670 to shake off bearish pressure

Gold price is making a minor recovery attempt from near the $1,640 region. In the view of FXStreet’s Eren Sengezer, sellers are set to retain control unless XAU/USD reclaims $1,670.

Initial support seen at $1,640

“On the downside, $1,640 (two-week low) aligns as initial support ahead of $1,620 (end-point of the latest downtrend) and $1,600 (psychological level).”

“In case XAU/USD rises above $1,665 (Fibonacci 23.6% retracement), it is likely to face immediate resistance at $1,670, where the 20-day SMA is located. A daily close above that level could attract buyers and open the door for an extended recovery toward $1,690 (Fibonacci 38.2% retracement).”