Early in the American session, Gold (XAU/USD) is trading at 1,792.81, below the 21 SMA and consolidating below the strong resistance of 6/8 Murray located at 1,812.
The price of gold remains just below $1,800. Treasury yields are putting downward pressure on gold due to the correlation between them. So, gold is likely to remain below this level as markets are approaching Christmas and New Year's.
If the bulls manage to consolidate above the high of 1,796, that is where the weekly pivot point is located, the key resistance of 1,800 will be tested after this level. The next stop for the bulls is seen at 6/8 Murray around 1,812.
According to the 4-hour chart, we can see that XAU/USD has still got stuck within its uptrend channel which has been underway since November 18. A sharp break of this channel and a daily close below 1,781 could mean a clear signal for bearish acceleration and gold could fall towards the 200 EMA located at 1,757 and could even reach 4/8 Murray at 1,750.
In view of the fact that these last days of December, there is a low volume in the market. Strong movements could occur suddenly, so we must be very careful if we are waiting for more when the markets finished their daily sessions.
A trading volume is expected to fall during these days, hence gold is likely to consolidate below the psychological level of 1,800 and could reach support levels of 1,750.
Our trading plan for the next few hours is to sell below 1,793 (21 SMA) with a target of 1,781. In case it falls below this level, we may continue selling with a target of 1,757 (200 EMA).
