Gold price pulled back towards the 38% Fibonacci retracement which was the first important short-term support level. Price is bouncing off this level and this is a bullish sign. We should be waiting for a new higher high in Gold.
Red line - major support trend line
Black line -short-term resistance (broken)
Gold price could make a new higher high this week above $1,349. Trend remains bullish as long as price is above $1,300. Gold price held the support at the 38% Fibonacci retracement. The RSI does not show any bearish divergence sign. Next support is found at $1,302 where we find the 61.8% Fibonacci level and an intermediate high made back on May 14th. The resistance at $1,350 is very strong and very important. Breaking above it or getting rejected at it could be critical for the price of Gold for the next 4-6 months.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.