Gold Price Analysis: XAU/USD eyes $1900, head-and-shoulders in play

• Gold remains vulnerable amid bearish technical set up.
• The price teases head-and-shoulders on the hourly chart.
• Bearish hourly RSI, not yet in the oversold territory.

Gold (XAU/USD) saw some aggressive selling in the last hour and revisited daily lows near $1925 region, courtesy of the fresh leg higher in the US dollar. The greenback caught a fresh bid-wave across the board after the major central banks announced that they would scale back dollar repos as coronavirus pandemic-led market tensions ease. Looking at gold, technically, the price has charted a potential head-and-shoulders formation on the hourly chart, with an hourly close below the neck line at $1924 to validate the bearish pattern. The yellow metal is primed for a fresh sell-off should the bulls fail to defend the $1924 barrier. The next cushion is seen at $1900; below which the three-week lows of $1863 will come into play. The hourly Relative Strength Index (RSI) remains bearish but just above the oversold territory; suggesting more room to the downside. Any recovery attempts will meet stiff resistance at the downward-sloping 21-hourly Simple Moving Average (HMA) at $1949. Acceptance above the latter will call for a test of the immediate hurdle around $1970 region (horizontal 100 and 200-HMAs) while the buyers could target the 50-HMA resistance at $1978 thereon. Gold Price Analysis: XAU/USD eyes $1900, head-and-shoulders in play