Has Gold hit a roof?
Traders, looking at daily Gold we can see price has continued to stall at $1747.50. This point has been holding buyers back since the 14th of April. The latest failed attempt happened in yesterday’s US session.
Technically price remains in a medium and longterm uptrend, but the short term has just started to turn lower with today’s 0.61% move lower (current). The small worry is the continued failed highs at resistance. We can see the three failed attempts in the last five sessions. We’re starting to ask if this level is now becoming key resistance and could it turn the medium-term trend lower? While this level remains firm it will continue to put some doubt on buyer momentum.
For now, buyers have short term support at around 1730, this level lines up with a previous high. Below that the next real solid support is at 1681 the bottom of the last range. That’s a fair way away and if it was retested would start to worry some of the current bulls between 1715 and yesterday’s high.
If short term support continues to hold and we see a new test of resistance that does show buyers continue to defend, we would like to see a new attempt and break of 1747.50 to really show buyer commitment and that this current medium-term up leg remains in play. A close below short-term support starts to shift the numbers to the sellers on the short term and a move back to 1710 adds to the pressure. But until we saw a new test or break of 1700-1681 we would be looking for buyers to maintain the current trend.