Gold Price extends bounce off an upward sloping support line from March 2021. That said, the corrective pullback from the yearly low also takes clues from the oversold RSI (14) to direct Yellow Metal buyers towards a horizontal area comprising multiple levels marked since early 2021, surrounding $1,727.
It’s worth noting, however, that the 78.6/% Fibonacci retracement of March 2021-22 upside, near $1,760, could test the metal’s upside past $1,722, a break of which could quickly propel Gold Price to May’s low near $1,787.
On the contrary, the aforementioned support line from March 2021 joins oversold RSI (14) to restrict short-term Gold (XAUUSD) declines around $1,709. Also acting as a downside filter is the $1,700 threshold.
In a case where Gold Price remains weak past $1,700, the odds of witnessing a south-run towards early 2021 bottom of $1,676 can’t be ruled out.