Gold price corrects from four-month highs at $1,808. Will XAU/USD yield a weekly closing above the 200-Daily Moving Average? FXStreet’s Dhwani Mehta analyzes the pair’s technical outlook.

Bulls take a breather

“Gold price is retreating to test the critical 200DMA at $1,796. Should the 200DMA resistance-turned-support give way, then a drop toward the November 15 high at $1,787 cannot be ruled out.

The next corrective target is seen at the previous day’s low of $1,768, below which floors will open up for a test of the bullish 21DMA at $1,749.”

“Alternatively, Gold buyers year for a weekly closing above the 200DMA, above which the $1,800 mark will be challenged once again. Further up, the previous day’s high at $1,805 and the August 10 top at $1,808 will be put to test.”