Gold Price Analysis: XAU/USD’s rejection

XAU/USD’s downside appears more compelling.
Technical set up on the daily chart favors the bears.
Focus remains on Biden’s stimulus passage and Fed decision.

Gold Forex Signals (XAU/USD) witnessed a steep drop on Friday after facing rejection at the 21-daily moving average (DMA) of $1876 once again.

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The sell-off drove the metal below the 50-DMA and 200-DMA supports. The bulls, however, quickly fought back control and managed to close the week above the critical 200-DMA at $1848.

Gold Price Chart: Daily

Even though gold recaptured the 200-DMA, the downside appears more compelling heading into a big week ahead.

Gold’s fate hinges on bipartisan support on US President Joe Biden’s $1.9 trillion stimulus proposal and the FOMC decision due this week Gold signals

The 14-day Relative Strength Index (RSI) points south, at 46.77, suggesting that the recent bearish streak could likely extend.

The bears need a clearance of strong support around the $1835 region to unleash losses if the 200-DMA gives way once again.

Further south, the Year-to-date (YTD) lows at $1803 could be put at risk.

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Meanwhile, the bearish bias will likely persist unless the buyers sustain footing above the powerful 21-DMA resistance.

The next upside barrier awaits at the downward-sloping 100-DMA at $1883.

Gold Additional levels

XAU/USD

OVERVIEW
Today last price	1854.34
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1854.34

TRENDS
Daily SMA20	1875.61
Daily SMA50	1859.32
Daily SMA100	1882.73
Daily SMA200	1847.71

LEVELS
Previous Daily High	1871.7
Previous Daily Low	1837.4
Previous Weekly High	1875.2
Previous Weekly Low	1802.8
Previous Monthly High	1906.87
Previous Monthly Low	1775.52
Daily Fibonacci 38.2%	1850.5
Daily Fibonacci 61.8%	1858.6
Daily Pivot Point S1	1837.26
Daily Pivot Point S2	1820.18
Daily Pivot Point S3	1802.96
Daily Pivot Point R1	1871.56
Daily Pivot Point R2	1888.78
Daily Pivot Point R3	1905.86