- XAU/USD extended its rally and closed sixth straight week higher.
- Strong support for gold seems to have formed near $1,800.
- Pair could stage a technical correction before pushing higher.
The troy ounce of the precious metal gained $11 last week and registered its highest weekly close since September 2011 at $1,810. Moreover, the XAU/USD pair extended its weekly winning streak to six.
Although XAU/USD dropped below $1,800 earlier in the week, the broad-based selling pressure surrounding the greenback allowed the pair to reverse its direction in the second half of the week.
Gold technical outlook
On the daily chart, the Relative Strength Index (RSI) is staying below 80, suggesting that the pair has more room on the upside before becoming technically overbought. However, the pair may have a difficult time breaking above $1,820 in the near-term and stage a technical correction before making a fresh attempt. On the downside, supports could be seen at $1,800 (psychological level), $1,787 (20-day SMA).