The gold price (XAU/USD) is retreating from an eight-month high as bulls fight to maintain control ahead of this week’s important catalysts.
The gold price is retreating from the important resistance level of $1,877, which includes Fibonacci 38.2% one-day and Pivot Point one-month R2.
Even if the metal clears the $1,877 barrier, the Pivot Point one-week R1, at $1,885, will precede the Pivot Point one-day R2 near $1,890 to confront gold purchasers before providing them the $1,900 barrier.
Meanwhile, a convergence between the previous weekly high and the lower Bollinger band on the hourly chart, close to $1,868, limits the XAU/immediate USD’s downside.
Following that, a one-week drop toward the $1,860 support (Fibonacci 23.6%) cannot be ruled out.
However, several obstacles lurk in the way of gold bears between $1,860 and $1,851, while Pivot Point one-month R1 appears to be a difficult nut to crack.
