The yellow metal had made a majestic step above the key hurdle at 1,745. Earlier in the week gold made a run towards 1,754 but stalled at 1,745 This might have discouraged the bulls on Friday.
Meanwhile, gold closed the week at 1,727 (below key ascending channel). Moreover, the retreat slipped under the 50 SMA (1,735). This could be a vital zone on Monday because if the seller congestion here is overcome then a return to levels above 1,755 would be highly probable.
However, if the price tanks farther down, we can expect the precious metal to explore levels around 1,722, marginally below the 100 SMA at 1,724.
From a technical point of view, the path of least resistance remains to the downside. The RSI, for instance, is glancing downwards below the midline, now at 47.73. The same bearish momentum is emphasized by the MACD.
A visible bearish divergence hints that sellers still have the upper hand. It is important that support at 1,718 is defended at all costs, otherwise gold could be on the express lane to June lows at 1,669.
