Gold Price Forecast: XAUUSD to sink towards $1,600 on a dip under $1,675 – ANZ

Trendline support of $1,760/oz was broken, with gold prices hitting an 11-month low recently. Downside support level sits at $1,675. If this level breaks, XAUUSD could fall to $1,600, analysts at ANZ report.

Gold price action is bearish

“Market sentiment is growing bearish as the price heads towards $1,675. We expect it to hold this support level, if not it could fall to the $1,600 zone. A Fibonacci retracement from the September 2018 low to this year’s high suggests the next support levels are $1,614 and $1,500.”

There is no sign of reversal of trend now, while immediate resistance could be seen at $1,744” 

“The downtrend looks intact until prices break above $1,800.”