Gold built on the previous day's bounce from the 1,795 region

Gold last week faced rejection near the very important 200-day SMA. The mentioned barrier is currently pegged near the $1,825 region, which should now act as a key pivotal point for short-term traders and help determine the next leg of a directional move. A sustained strength beyond will set the stage for an extension of the recent strong bounce from the $1,750 zone and push the XAU/USD beyond monthly swing highs, around the $1,834 region touched last Thursday. The momentum could further get extended to the $1,845-46 region, en-route the next major hurdle near the $$1,866 area. Some follow-through buying should pave the way for additional gains, allowing bulls to surpass the $1,880 level and aim to reclaim the $1,900 round figure.

On the flip side, dips below the $1,800 mark might continue to attract some dip-buying near the $1,795-90 region. A sustained breakthrough might be seen as a fresh trigger for bearish traders and prompt some aggressive technical selling. The XAU/USD might then fall to the $1,775 support area, which if broken decisively will shift the near-term bias back in favour of bearish traders. The next relevant support is pegged near the $1,762-60 area before gold eventually dropping to retest June monthly swing lows, around the $1,750 region.