Gold Price breaks a month-old bearish channel towards the south and suggests further downside past the latest three-month low surrounding $1,920. However, the oversold RSI conditions keep offering intermediate bounces as the bullion drops towards the 61.8% Fibonacci Expansion (FE) of May 15 to June 16 moves, near $1,907. Following that, the $1,900 round figure may test the XAUUSD bears before highlighting the 78.6% FE level of around $1,890. In a case where the precious metal remains weak past $1,890, the June 2022 peak of near $1,880 and early March 2023 high close to $1,858 will act as the last stops for the bulls to leave the throne and give control to the bears.
On the contrary, the bottom line of the stated bearish channel, close to $1,925 at the latest, can escalate the corrective bounce toward the $1,940 hurdle. However, a convergence of the 200-EMA and a three-week-old descending trend line, near $1,960, appears a tough nut to crack for the Gold buyers afterward. Even if they manage to cross the $1,960 resistance, the top line of the aforementioned falling trend channel, close to $1,970, will be the final battle before welcoming the bulls.
Overall, the Gold price is likely to decline further but the downside appears slow and steady.
