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Technical Analysis: Gold eases from 8.5-year top, short-term rising wedge in focus

Having refreshed the highest levels since November 2011, Gold prices remain pressured below $1795. The reason could be the wall of resistance around $1800 as well as an upward sloping trend line from June 24. Also adding to the upside barriers could be the overbought RSI conditions. As a result, sellers are currently targeting the re-test of the July-start top of $1789. Though, $1780 and a rising support line from mid-June, at $1771 now, become the key afterward. While a downside break of $1771 confirms a bearish technical formation, rising wedge, the sellers will look for validation from an ascending trend line from June 26, currently around $1766, for further weakness.

In a case where the bulls retake the charge, the immediate resistance line around $1799 will precede the $1800 threshold to offer a tough nut to crack. Also likely to question the bullion's further upside will be the November 2011 peak of $1803.15. However, the precious metal's rise beyond $1803 will divert the optimists towards the record top of $1921 with multiple halts during the run-up staying ready to offer a bumpy road.

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