Early in the American session, gold (XAU/USD) was trading with considerable losses. Currently, it is trading at 1,836 with a bearish bias on 4-hour charts but with strong support in the area of 50%, Fibonacci around 1,826.

The tightening of central banks from around the world has reignited fears about growth and investors are seeking refuge in the US dollar. Anxiety among investors and sentiment around the dollar is mounting ahead of the Fed meeting next week.

Gold was falling on Friday and trading near 1,833. Relevant support is seen on the 4-hour chart at 1,826. If it is broken and the asset closes below this level, it could lead to further losses. Thus, gold could reach 61.8% Fibonacci at 1,819. The US inflation data may be the key to define the next direction of gold.

XAU/USD has one last support and we could see a strong technical bounce if it tests the 1,826 area. This level supported gold on May 13, 16, and 31 and is likely to show its strength now. Gold could bounce back and resume its uptrend.

The eagle indicator favors the downside in the short term. However, the price could find support around the downtrend channe, which could favor a technical rebound in the coming hours.

In the 4-hour chart, we can see that gold is approaching the support at 1,826. Therefore, we should expect a rebound in this area, in case gold manages to stay above it, traders will ahve an opportunity to buy with targets at 1,843 and 1,849 (21 SMA).