In general, the bullish potential surrounding the metal remains limited
Gold prices keep trending higher since Friday while struggling to stage a more decisive ascent as dollar bulls are reentering the game. The XAUUSD pair extended gains to 1.5-week highs around $1,815 before retreating marginally in recent trading.
Despite the prevailing bullish bias, the yellow metal refrains from challenging the directionless 20-DMA, currently at $1,817. Should the bullion overcome this barrier in the near term, the short-term technical outlook will improve further.
On the downside, the $1,800 figure remains in the market focus while the intermediate support arrives at $1,806 where the 200-DMA lies. On the four-hour charts, the overall picture looks neutral, suggesting XAUUSD could spend some time in consolidation mode before deciding on the further direction.
In general, the bullish potential surrounding the metal remains limited as the greenback will likely climb to fresh mid-2020 highs in the near term. Later this week, the US CPI report could reveal another jump in consumer prices. In this scenario, the dollar would rally across the board, thus pushing the yellow metal back below the $1,800 level.
Otherwise, the XAUUSD pair may challenge the mentioned 20-DMA, a decisive break above which would pave the way towards the next barrier represented by the $1,830 zone. However, it looks like gold prices will refrain from recovery above the $1,850 region last seen on January 25.
In the immediate term, the prices need to hold above $1,807 in order to stay afloat on a daily closing basis. However, should dollar demand continue to pick up during the North American trading, it looks like the bullion will have to give up modest gains amid the renewed bearish pressure.