Gold continues to fall out of favor with investors, as the yellow-metal breaks under $1,700 and continues to set new lows for the year so far. A bearish head and shoulders pattern is warning that the price of gold could drop towards the $1,600 level before a major recovery takes hold. Additionally, the 50-day moving average has crossed over the 200-day, creating a further sell signal.
XAUUSD is only bullish while trading above the $1,760 level, key resistance is found at the $1,780 and the $1,800 levels.
If XAUUSD trades below the $1,760 level, sellers may test the $1,668 and $1,630 support levels.