Gold is starting to look vulnerable to declines in the short-term after bulls failed to move the yellow-metal above an important price channel. Technical analysis is highlighting that the recent upside failure could cause the price of gold to drop below the $1,800 level. Sustained weakness below the $1,800 level would probably cause gold to slump towards the bottom of the price channel, around $1,730.
XAUUSD is only bullish while trading above the $1,830 level, key resistance is found at the $1,855 and the $1,8565 levels.
If XAUUSD trades below the $1,830 level, sellers may test the $1,800 and $1,770 support levels.
