Gold Price Forecast: XAU/USD eyes a daily closing above $1,712 to confirm a bullish channel

Gold price tests its luck once again. Will XAU/USD confirm a falling channel breakout? FXStreet’s Dhwani Mehta analyzes the pair’s technical picture.

Sellers will fight back control on failure at $1,712

“Gold price is breaking above the falling trendline resistance at $1,712, which if confirmed on a daily closing basis will validate a falling channel breakout. An upside break from the channel will offer additional legs to the ongoing recovery from six-week lows, with the bearish 21-Daily Moving Average (DMA) at $1,738 back on buyers’ radars. Ahead of that, the previous day’s high at $1,728 will challenge bearish commitments.

“Failure to find a strong foothold above the critical resistance at $1,712, sellers will fight back control in the near term. The $1,700 mark will be put to test once again. A sustained move below the latter will challenge the intermittent lows of around $1,690. Further down, sellers will look to take out the 2022 low of $1,681 once again.”