Gold price is challenging key 50-Simple Moving Average (SMA) resistance at $1778 on its recovery journey. Will XAU/USD find acceptance above this key level? In the view of FXStreet’s Dhwani Mehta, the yellow metal keeps the upside potential intact.

See – Gold Price Forecast: XAU/USD to mark a change of trend lower only below $1691/71 – Credit Suisse

Strong support is seen at the $1763 21-SMA 

“In absence of a taper signal from the Fed, gold price could extend its recovery momentum towards the $1800 mark. If the Fed delivers a hawkish surprise, the dollar could see a spike, downing gold back to multi-week lows.”

“A four-hourly candlestick closing above 50-SMA resistance at $1778 is critical to extending the recovery towards the $1800 mark.

Ahead of that psychological barrier, the horizontal 200-SMA at $1787 could test the bearish commitments. Next, the downward-sloping 100-SMA at $1793 could also threaten the bullish attempts.”

“Strong support is seen at the bullish 21-SMA at $1763, which if broken could trigger a fresh sell-off towards the six-week troughs of $1742. The $1750 psychological level could offer brief relief to gold bulls.”