Gold Price Forecast: XAU/USD is at risk of extending its slump once $1,610 gives up

Gold fell for a second consecutive week and neared a two-year low of $1614.81 on Friday. The yellow metal could test the $1,500 level, FXStreet’s Valeria Bednarik reports.

The risk remains skewed to the downside

“Large stops are suspected just below $1,610, the immediate support area. Below the latter, gold can extend its slide to $1,565.02, March 2020 high. The next support is the $1,500 threshold.”

“A steady advance beyond the critical Fibonacci resistance level at $1,658.50, the 61.8% retracement of the $1,614.81/$1,729.54 rally, could result in a bullish corrective advance toward $1,671.90, the 50% retracement of the mentioned rally.”