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
|