Gold Price Forecast: XAU/USD eyes the July 27 low of $1,712 before attacking the $1,700 mark

Gold price is accelerating the previous decline at the start of another critical week. As FXStreet’s Dhwani Mehta reports, XAU/USD eyes daily close below $1,738 to extend the downtrend.

There is more room for additional declines

“Gold price cracked the critical rising trendline support at $1,738, which bulls defended on Friday. Daily closing below the latter is needed to confirm a downside break and kickstart a fresh downtrend towards the $1,700 mark.”

“Bears took out the $1,728 demand area to refresh monthly lows at $1,723. Further down, sellers could test the July 27 low at $1,712 should the selling pressure intensify.”

“Any recovery attempts will need to find acceptance above the rising trendline support turned resistance at $1,738.  The $1,750 psychological level will be the level to beat for the bulls. Friday’s high of $1,759, around where the bearish 50-Daily Moving Average (DMA) lurks, will be the last line of defense for XAU bears.”