GOLD PRICE OUTLOOK

Gold fell beneath $1,800 for the first time since mid-July last week despite the dollar weakness. But, Gold edged higher through the early European session and climbed to eight-day highs around the $1,845 region in the last hour by extending the bounce off monthly lows near $1,760 (November 30)

The bullish break above $ 1,818 as mentioned previously, now opens doors to a further upside. To the topside, a recovery higher might encounter resistance around $1,850 and $1,920. Next critical levels to look are set at the $1,850 level, the previous long-held support now a powerful resistance. $1,850 level coincides with fibonacci 61.8% retracement of the 16-30th November bearish move.

An alternative scenario below $1,818 suggests a further downside with $1,800 & $1,770 as targets.