Gold price resumes the uptrend and hits five-month highs beyond the $1,800 mark. What’s next? FXStreet’s Dhwani Mehta analyzes XAU/USD’s technical outlook.

Bulls remain in control 

“Gold price has taken out the August 10 high at $1,808, now heading closer toward the July 4 high at $1,814. The next bullish target is seen at the $1,820 round figure.”

“The 14-day Relative Strength Index (RSI) has turned flat just beneath the overbought territory, suggesting the potential upside in Gold price.”

“In case of any retracement in Gold price, if the 200-Daily Moving Average (DMA) at $1,796 gives way, then a drop toward the November 15 high at $1,787 cannot be ruled out. The correction could then extend toward the previous day’s low of $1,778.”