Gold Price Forecast: XAUUSD to initiate a fresh downswing on a close below $1,842 support

Gold Price is nursing losses below $1,850. A daily close below the confluence of the horizontal 21 and 200-Daily Moving Averages (DMA) at $1,842 would open up additional losses, FXStreet’s Dwhani Mehta reports.

Bears fight back control

“Sellers await a firm daily closing below the $1,842 support to initiate a fresh downswing towards the $1,820 round level. Ahead of that bears will challenge Tuesday’s low of $1,837, followed by the previous week’s low of $1,829.”

“The immediate upside now remains capped by the falling trendline resistance at $1,850. Any further upside will XAU bulls will need to find acceptance above this week’s high of $1,860. The previous week’s high of $1,870 will guard the further upside, as bulls will then keep their sight on the monthly top of $1,874.”