Why it's not the time for gold
Gold H4 chart
Gold Daily chart
Gold managed to break above $1900/Oz during yesterday’s trading reaching as high as $1913/Oz. However, it failed to sustain these gains and declined back at the end of the US session, closing the day below the $1900 handle. The technical indicators are heavily overbought, which suggests a possible downside retracement in the coming hours/days. Therefore, do not chase the current rally with long positions at the current level. Instead, I would wait for a couple of days, as the downside retracement might continue toward $1850/Oz which could be seen next week. Yet, we will maintain our medium-term long positions issued back in April at $1710 and $1725 until further notice.
| S3 | S2 | S1 | Pivot | R1 | R2 | R3 |
| 1856.11 | 1878.09 | 1887.38 | 1900.07 | 1909.36 | 1922.05 | 1944.03 |