The precious metal was not able to reach the resistance at the previous high. XAUUSD has been on a downtrend for the last two trading sessions; in the last one, the pair sank all the way to the support level at $1,795.14, which is found at the 50% Fibonacci retracement.
The Bollinger bands are starting to open up, which is a good indicator for higher volatility. The price trades below the upper band, which will likely help the price recover some ground in the upcoming sessions.
The relative strength index is currently at 50%, which will allow the price to move in either direction at this point. The support at $1,795.14 proved to be strong and prevented the price from continuing to fall. The price might enter the Ichimoku cloud in the next trading sessions, and since the cloud indicates an uptrend, this will be good for Gold.
The overall trend continues to be upward, and it's possible for the price to break the $1,834 barrier in the short term. Before that, Gold will have to break the $1,824.67 price line, which is our 38.2% Fibonacci retracement.
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