Gold testing 100EMA on Daily, Time for reversal or pain ahead?

Gold price (XAU/USD) sticks to its positive bias during the early European session on Friday and currently trades just above the $2,600 mark, though any meaningful appreciating move still seems elusive. Against the backdrop of persistent geopolitical risks, trade war fears and the Federal Reserve's (Fed) hawkish shift, the threat of a partial US government shutdown offers support to the safe-haven precious metal. 

Technically, Gold is finding some supports near 100EMA on daily chart & this EMA in the past has given multiple time supports to non-yielding metal. Moreover, price has formed Inverted Hammer Candle on daily chart which shows that there may be a reversal near key inflection point. A RSI Divergence is also seen on 4hr timeframe.

Any subsequent move up might continue to face immediate resistance near the overnight swing high, around the $2,626 region. Some follow-through buying, however, might trigger a short-covering rally and lift the XAU/USD to the next relevant hurdle near the $2,652-2,655 supply zone. A sustained strength beyond the latter could negate the negative bias and pave the way for additional gains.

On the flip side, the monthly low, around the $2,583 region touched on Thursday, could protect the immediate downside, below which the Gold price could drop to the $2,560 area en route to the $2,537-2,536 zone or the November swing low. The downward trajectory could extend further towards the $2,500 psychological mark before the XAU/USD eventually drops to the very important 200-day SMA support, currently pegged near the $2,472 region.