Gold price (XAU/USD) remains slightly bullish as bears took a breather after a sharp rejection when it hit 1,823. Gold is expected to consolidate in the coming days between 1,805 - 1,781.
According to the 4-hour chart, we can see that it is trading below the 21 SMA located at 1,806 and above the uptrend channel formed on November 25.
According to the daily chart, gold, after failing to consolidate around 1,820, found support at the 21 SMA, located at 1,785 and at the bottom of the bullish trend channel.
In the case of breaking and firming clearly below 1,784, the yellow metal would be positioned for a bearish extension, with the next support at 1,781 (5/8 Murray). A sharp break and daily close below this level could cause a bearish acceleration and we could expect it to reach the 4/8 Murray area around 1,750.
In the opposite direction, a daily close above 1,806, would be a key factor pointing to further gains and could reach strong resistance at 1820. A consolidation above this level could give gold momentum for a new bullish sequence reaching the resistance of 7/8 Murray at 1,843.
Since gold is consolidating below 1,806 any bounce towards this zone will be considered a signal to sell. A pullback to the 6/8 Murray zone located at 1,812 and a failure to consolidate above this level could be consider a sell entry with targets at 1,790 and 1,781.