The bullion rose nicely on Thursday, but it erased most of those gains on Friday. It looks like the current short-term uptrend might be running out of steam, and a possible correction or consolidation might be ahead of us.
Gold is now stuck at March highs at around 1,755 USD, and it needs a clear break above that level to confirm the short-term uptrend. However, the next major selling zone lies just a bit above – at 1,765 USD, where December lows are converged with May 2020 highs.
Therefore, bulls are expected to have a hard time pushing the bullion through these zones. If they are successful, though, the medium-term outlook could turn bullish, targeting 1,800 USD.
Alternatively, if the bearish trend resumes, the supports could be seen near 1,735 USD (8+21 EMA convergence) and afterward near the 1,700 USD zone.
Source: https://www.axiory.com/technical-analysis/gold-failing-near-previous-highs
