Gold Price Forecast: XAUUSD to validate bull flag formation on daily close above $1,762

Gold price is extending the previous week’s corrective mode from three-month highs at $1,787. In the view of FXStreet’s Dhwani Mehta, XAUUSD appears a ‘buy the dips’ trade amid a potential bull flag on the daily chart.

XAUUSD needs a daily close above $1,762 to confirm a bull flag

“Gold price remains a ‘buy the dips’ opportunitiy for traders, with a daily close needed above the falling trendline resistance at $1,762 to validate a bull flag formation. Ahead of that level, the $1,750 psychological level will be put to test. The next upside target for XAUUSD is envisioned at the multi-month highs at $1,787.”

“Alternatively, strong cushion is aligned at the falling trendline support at $1,738. A sustained move below the latter will invalidate the bullish thesis, opening the further downside toward the mildly bearish 100-Daily Moving Average (DMA) at $1,712.”