Having reached the highest level since September 2011 at $1818.17 on Wednesday, gold has entered a phase of bullish consolidation before witnessing a fresh leg higher. Technically, the path of least resistance is to the upside on a decisive break above the critical $1820 level.
According to the Technical Confluences Indicator, the yellow metal is flirting with the resistance at $1810.50, where the Bollinger Band one-day Upper, previous high 4H and SMA50 15-minutes.
The next resistance is a crucial one for the bulls at $1820, a break above which could trigger an extensive rally towards $1850.
Alternatively, any corrective downside could find a temporary cushion at $1808, the convergence of the previous low one-hour, Fibonacci 38.2% one-day and Bollinger Band one-hour Middle.
Meanwhile, strong support at $1806.60, the intersection of the previous low four-hour and pivot point one-week R2, is the level to beat for the bears in the intraday trading.