Gold Price Forecast: Where XAU/USD Selloff May Sto

Market Analysis
This week, Gold slipped to a multi-week low eyeing a test of well-known technical levels. Where could XAU/USD rebound?

Gold Technical Analysis

· XAU/USD trend changes from neutral to bearish

· Bearish momentum may accelerate below $1,861

Bulls Pullback

On September 16, Gold rallied to an over two-week high at $1,973 then retreated after as bulls seemed to cut back. Ultimately, a weekly candlestick closed with a Doji pattern highlighting the market indecision. The Relative Strength Index (RSI) remained flat then crossed below 50 on Monday signaling a possible start of bearish momentum.

On Monday, Gold slipped by 1.7% and closed below the 50-day moving average. The precious metal moved to the lower trading zone $1,861- $1,921 eyeing a test of the low end of it.

A daily close below the low end of the zone could encourage bears to press towards the monthly support at $1,796 (Oct 2012 high).