Gold Price Analysis: The weekly close looks positive but the bulls need to break $1765.38

Gold weekly chart

The weekly chart below reminds us of the lofty levels the bulls are looking to target. The standout point on the chart is the fact that the price has stopped in the middle of no man's land between the consolidation area on the left of the chart. 

The good news for the bulls is the fact that the price continues to hold above the USD 1700 per ounce level. There is such a big bearish divergence on the Relative Strength Index indicator and it could be the catalyst for a drop. If there is to be a move up that divergence Relative Strength Index trendline would need to be broken and maybe next week this could happen. 

Gold daily chart

The daily chart shows a very positive picture but the key level is still the USD 1765.30 per troy ounce level. If that zone breaks then the Fib extension targets project a move very close to the USD 1800 per troy ounce psychological zone. 

The trendline under the chart is a slight bother for the bulls. When a trendline is that steep it makes it much easier to break but the 55 Exponential Moving Average is just under that zone lying in wait for support. 

The indicators have all moved to the upside as the MACD histogram is green and the signal lines are above the mid-level. While the Relative Strength Index is firmly above 50 and there is still space to move to the upside. 

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