GOLD scored modest gains yesterday. What makes this story more complicated, it is a gold price position that is sitting within the strong previous support zone, that becomes a newly found resistance level, and it isn’t breaking down. You can check these levels in our previous Gold updated statement, anyway, the most important level at the moment is 1760 that is still waiting to be retested to prove its resistance function.
As gold confirms its bearish direction, levels to watch should be some support levels that are sitting below the current price position and hold the price. The most important from our way of view is 1690.00. From our perspective, this level will be used as taking profit area from bearish traders who took short positions below 1760.00. Because of that, it is obvious to see some bullish reaction, but that would be only a momentum price correction.