Gold closed the week above the 200-day SMA and the Fibonacci 23.6% retracement of the latest downtrend. As FXStreet’s Eren Sengezer notes, the technical outlook suggests XAU/USD remains slightly bullish.

$1,870 aligns as next resistance

“On the upside, $1,870 (Fibonacci 38.2% retracement) aligns as next resistance. In case XAUUSD rises above that level and starts using it as support, it could target $1,890 (100-day SMA and Fibonacci 50% retracement) and $1,900 (psychological level, 50-day SMA) afterwards.”

“$1,850 (Fibonacci 23.6% retracement) forms first support ahead of $1,840 (200-day SMA). Only a daily close above the latter could attract sellers and cause the near-term technical outlook to turn bearish. In such a scenario, $1,830 (static level) could act as the next line of defence.”