Gold is trading in a tight range near $1,770. XAUUSD seems poised to challenge 200-day SMA, around the $1,800 mark, FXStreet’s Haresh Menghani reports.

Break under $1,730-$1,725 to negate the positive bias

“A subsequent strength towards reclaiming the $1,800 psychological mark, nearing the very important 200-day SMA, looks like a distinct possibility. Given that RSI (14) on the daily chart has moved on the verge of breaking into overbought territory, bulls might opt to take some profits off the table near the technically significant moving average.”

“The overnight swing low, around the $1,753 area, now seems to protect the immediate downside. Any further pullback could be seen as a buying opportunity near the $1,730-$1,725 strong horizontal resistance breakpoint. The latter coincides with the 100-day SMA and should act as a strong near-term base for gold. The sustained weakness below will negate the positive bias and prompt some technical selling, paving the way for a slide back towards the $1,700 round figure.”