Gold Price Forecast: XAU/USD’s decline to persist on failure to defend $1,815 – SocGen

Gold’s decline has extended after the break below June/August lows of $1,885/$1,893. Economists at Société Générale analyze the yellow metal’s technical outlook.

Signals of trend reversal are not yet visible

Gold has recently met downside projections near $1,815 which is also the lower limit of the channel within which down move since May has evolved. A rebound can’t be ruled out however signals of trend reversal are not yet visible; lower band of previous range near $1,885/1,$893 could provide resistance. 

In case Gold fails to defend $1,815, the down move is likely to persist towards February low of $1,805 and $1,786/$1,778, the 61.8% retracement from September 2022; this could be an important support zone.