After a long time, ETF gold holdings increased significantly at yesterday’s sell-out. Rising inflation expectations around the globe with calm US 10-year rates are supporting the bullion. On the other hand, the major resistance, the 233-day moving average has been stopping almost every upside rally with the help of a relatively strong dollar index.
Now gold is testing the lower line of the short-term trend channel. 1780-1775 zone will be crucial for the direction. If gold can hold inside of the trend channel, a move to the middle point of the trend might begin. RSI is giving a slight bullish divergence which is a good thing for a bullish outlook. Around 1805 will be a good target for this week, which is also close to the infamous 233-day moving average.
If gold cannot stay inside of the channel, the bullish story may change rapidly. 1765 and 1745 can be followed as possible support levels for downside moves.