If we were to reach towards the $1750 level underneath and break down below there, then it is very likely that the gold market goes looking towards $1725 level. After that, then we would more than likely see a move towards the $1680 level, which is an area that we have seen a lot of support in multiple times. Market continues to see a lot of momentum shifting in both directions, and you should probably pay close attention to the US dollar itself. Another thing to pay attention to is bond yields in America, because if they continue to rise, that works against the appeal of gold as well.

Technical analysis

Ther Gold price performed well in the first half of this month, gaining 4% by the 14th. However, the price ran into robust resistance at the 100, and 200-day moving averages (DMA’s) at $1,798 and $1,796, respectively. As a result of failing to hurdle the indicators, Gold slid 1.6% on Friday from $1,796.50 to $1,767. Subsequently, the price is now below the 50-DMA at $1,778, reinforcing the negative momentum.

As long as Gold continues to do business below the long-term momentum indicators, I expect weakness to prevail. On that basis, I maintain a bearish view, targeting the September low of $1,720. However, if the Gold price closes above $1,800, it will invalidate the bearish thesis.