The spot gold technical outlook remains bearish with gold failing to break above the 20-day SMA for the 18th straight trading day. Additionally, the Relative Strength Index (RSI) indicator on the daily chart stays slightly below 50, confirming the view that sellers are looking to remain in control of gold (Yellow Metal) action.
On the downside, the initial support is located at $1,750 (lower limit of the weekly channel) ahead of $1,730 (static level) and $1,720 (late September low).
The first hurdle aligns at $1,765 (20-day SMA) ahead of $1,782 (October 8 high, 50- day SMA). Only a daily close above the latter could open the door for a prolonged rebound toward $1,800, where the 100-day SMA, 200-day SMA and the Fibonacci 50% retracement of the April-June rally meet.