The price of gold is trading lower at the $1,832 level and it could approach the $1,800 psychological level if the USD regains footing versus its rivals. XAU/USD has come back higher to retest a resistance area, support has turned into resistance, before resuming its corrective phase.

The ECB Press Conference, Monetary Policy Statement, and the EU Economic Summit could bring high action on gold later today. Also, the US inflation data could bring a clear direction in the short term.

XAU/USD Ended Its Rebound!

XAU/USD has found strong resistance at the R1 (1,869) level, right above the median line (ML). The immediate support is seen at the Pivot Point ($1,817), while the resistance stands at the median line (ML), between the $1,848 - $1,862 area.

We may have a great selling opportunity if the price retests the resistance levels. Is hard to believe that the price of gold will register a strong sell-off before the rate moves in range or until it makes a false breakout with great separation above the near-term upside obstacles.

• XAU/USD Trading Tips

A new higher high, close above the $1,880 suggests buying as the gold price will continue to increase far beyond the $1,900 psychological level.

The $1,848 or the median line (ML) retest, false breakout with huge separation, could bring a good short opportunity. Personally, I believe that the price will come back to challenge the immediate resistance levels before deciding the direction.

Also, a bearish closure under the lower median line (LML) could indicate a broader drop.