MTradingGlobal

Gold bulls are on test seats below $1,800

OANDA:XAUUSD   Gold Spot / U.S. Dollar
Gold pierces the key horizontal resistance established in late June during a five-day consolidation of the August 08 fall. However, the RSI remains normal and MACD flashes bearish signals, which in turn probe the rebound. Even if the quote crosses the $1,790 hurdle on a daily closing basis, 50-DMA and a descending resistance line from June 01 , respectively around $1,800 and $1,815, will challenge the gold buyers. If at all the bullion remains firm past $1,815, the monthly high near $1,831 should return to the charts.

Meanwhile, a daily closing beneath the $1,790 will redirect gold sellers to $1,760 and the late June’s low near $1,750. In a case where gold bears keep reins below $1,750, the $1,715 and the $1,700 round figure will be important ahead of the yearly bottom surrounding $1,676. Overall, gold bears remain hopeful unless the quote regains above $1,815. It should be noted that today's US Retail Sales becomes the key event of the week , acting as an extra filter for gold's upside momentum.

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