Good day traders! Gold has since mid-April struggled to break above the 0.786% Fib retracement level, measured from the all-time high to the 2015 low. At roughly the same level there is also a confluence of two different pitchfork lines and if Gold were to go higher it would need to overcome those resistance lines.
Since the high on the 14th of April, price has been trading sideways in either a corrective or a possible topping pattern. Since the main trend is up, I would favor another break to the upside, but I would not be surprised if price just pips the April high at 1747.72 and then start a deeper correction.
Should price, however, decline from current levels and break below the lower orange trendline, then Gold might have put in a temporary top that could see price trade lower towards the 1644.43 and 1602.30 price levels.
More updates to follow.
Bias: Cautiously bullish above the upper orange trendline and bearish below the lower trendline.
Potential targets: 1747.72 to the upside with 1644.43 and 1602.30 as downside targets.
Until next time, have a great day and stay safe!