Despite the bearish shift witnessed in the technical outlook after gold price touched its lowest level in more than a month, experts expect gold to stage a recovery in the near-term and point to an average price target of $1,779 per ounce for the week starting today (Monday).
Following Friday’s drop, the Relative Strength Index (RSI) indicator on the daily chart fell below 40 for the first time in more than a month, suggesting that the bearish pressure is picking up steam.
The RSI also stays slightly above 30, showing that there is more room on the downside before gold becomes technically oversold and sellers look to book their profits. $1,760 (static level) aligns as the initial support ahead of $1,750 (June 29 low). —TLTP