On Thursday, gold was half a percent stronger during the US session, changing hands at around 1,840 USD, up more than 4% from its Monday's lows.
However, the bullion is now approaching the key resistance of previous lows near 1,850 USD. While gold trades below this level, the medium-term outlook still seems bearish, as lower lows and lower highs are observed on the chart. Therefore, bears could use the current rally to sell at this resistance.
On the other hand, if gold manages to break above this level, the immediate uptrend might be confirmed, targeting 1,920 USD, where the bearish trend line from previous highs is located. Until then, bears will most likely be defending the psychological 1,900 USD level as well.
Alternatively, if the bearish pressure reappears, the first support could be near 1,830 USD and afterward at around 1,800 USD.
There are many fundamental reasons why metals should go higher, and gold being in a bearish trend is really surprising.