Gold is trading at a critical juncture as the new trading week begins, following last week strong bounce from the $1,670 technical area. The Parabolic SAR indicator on the four-hour time frame shows that gold could rally towards the $1,785 area if the price holds above the $1,730 area. To the downside, failure to overcome the $1,730 level could cause a technical retest of the $1,700 level.
XAUUSD is only bullish while trading above the $1,730 level, key resistance is found at the $1,750 and the $1,785 levels.
If XAUUSD trades below the $1,730 level, sellers may test the $1,700 and $1,670 support levels.
