On Monday, the price of gold is consolidating a two-day rally close to its highest point in eight months at $1,880.
Following Friday’s crucial US economic data, the United States Dollar (USD) is maintaining its bearish momentum with the US Treasury bond yields.
Relative Strength Index (RSI) is edging closer to overbought territory, signaling caution for bulls as the price of gold has stopped rising.
Before the price of gold resumes its ascent above the $1,900 level, a decline toward the $1,865 support may be in store.
The falling wedge target price of $1,877 has been reached, allowing gold bulls to take a break.
To once again go for $1,900, recapturing the multi-month high at $1,880 is crucial.
In order to prolong the positive reversal, a daily closing above the latter is required.
In contrast, if Gold a new decline toward the positive 21-Simple Moving Average (SMA) at $1,853 cannot be ruled out if sellers wipe out the previously indicated support at $1,865.
