The Gold Price Rebound Could Retest The Multi-Month High

Gold price is resuming the recent uptrend toward the three-week high of $1,858 on Tuesday, reversing a temporary drop seen a day before. Will XAU/USD defend the 21-Daily Moving Average at $1,843? FXStreet’s Dwani Mehta analyzes the pair’s technical outlook.

Daily closing below the 21-DMA could call for a bearish reversal

“Should the recovery momentum pick up pace, the Gold price rebound could retest the multi-month high at $1,858. Further up, the mildly bullish 50 DMA at $1,870 could be challenged. At that level, Valentine’s Day high aligns. Recapturing the latter is critical to sustaining the Gold price recovery from two-month troughs of $1,805.”

“Daily closing below the 21-DMA at $1,844 could call for a bearish reversal, opening floors for a test of Friday’s low of $1,835. Additional declines will threaten the $1,830 round level.”