After dropping below the lower limit of the ascending regression channel coming from June, Gold found support and returned within this channel. The Relative Strength Index (RSI) indicator on the daily chart, however, failed to push higher after recovering to 50, reflecting buyers’ hesitancy. On the downside, key support area seems to have formed at $2,680-$2,675, where the Fibonacci 23.6% retracement of the uptrend and the lower limit of the ascending channel meet, ahead of the 50-day Simple Moving Average (SMA) at $2,640. A daily close below this support could open the door for another leg lower toward $2,600. Looking north, the first resistance could be spotted at $2,720 (20-day SMA). In case XAU/USD flips that level into support, technical buyers could take action. In this scenario, $2,760 (mid-point of the ascending channel) could be seen as the next hurdle before $2,790 (record-high).