Gold Price Analysis: XAU/USD holds rising channel support

• Gold is defending the lower end of a multi-week rising channel. 
• A breakdown looks likely with US yields on the rise. 

Gold is currently trading just above $1,902 – the lower end of the falling channel represented by trendlines connecting Sept. 28 and Oct. 14 lows and Oct. 2 and Oct. 12 highs. 

A break below $1,902 would confirm a rising channel breakdown. That would imply a resumption of the sell-off from the Sept.16 high of $1,973 and open the doors for a re-test of September lows near $1,850. 

That possibility cannot be ruled out as treasury yields are rising, making the zero-yielding yellow metal look unattractive. 

On the higher side, the Oct. 21 high of $1,931 is the level to beat for the bulls. That would expose the upper end of the rising channel, currently at $1,958. 

Daily chart

Trend: Neutral

Technical levels