Gold faces resistance around $1832 levels in the near term

Technical Analysis:

Gold had rallied through $1834 levels over the last week before turning lower again. The yellow metal had reached up to fibonacci 0.50 retracement of the drop between $1816 and $1750 levels respectively. Since then, it has been in control of bears dropping through $1795 levels.

Gold might have carved a lower high around $1834 levels already or might push through $184750 levels in the next few trading sessions before facing strong resistance. Furthermore, thee drop towards $1795 also seems to be an impulse, which means the drop is incomplete yet.

High probability remains for the yellow metal to print one more low towards $1780 levels before finding interim support again. Yesterday’s high was also registered around $1822 mark, which is just above fibonacci 0.618 retracement of the drop between $1834 and $1795 levels respectively.

If the above wave structure holds well, Gold prices would stay below $1834 levels and turn lower towards $1780 levels in the next few trading sessions. We shall again review around $1780 zone, regarding Gold’s next major move ahead.

Most traders might be willing to hold Gold short positions until at least $1780 mark. A continued drop below $1780 will confirm that a meaningful top is already in place at $1834 levels and that bears are back in control.

Prepared by

Finacademy Technical Team