After a four-week winning streak, gold struggled last week to make a decisive move in either direction and entered into a consolidation period around $1,800 per ounce where it is likely to stay for most of the week starting today (Monday).
Gold’s near-term technical outlook remains neutral with a bearish bias as the price stays near the lower limit of the weekly consolidation channel.
Additionally, the Relative Strength Index (RSI) indicator on the daily chart retreated below 50, suggesting that buyers are struggling to remain in control.
Nonetheless, sellers could wait for gold to make a daily close below $1,796 (100-day SMA) before looking to ramp up the bearish pressure.
Below that level, $1,790 (Friday low) aligns as interim support ahead of $1,775 (Fibonacci 61.8 retracement April-June uptrend. —TLTP