Gold price has pulled back towards $1,460 after reaching the major resistance area around $1,490. Gold is now testing for the third time the important support area of $1,450-60. It is very important for bulls to hold this level otherwise the road to $1,410 will be open wide.
Gold price so far has respected the $1,450-60 support area. Price has visited this level more than two times since early November and none has lead to a break down. It is important for bulls to respect this level and hold above it. However holding above this level is not enough. Gold bulls will need to recapture $1,490-$1,500. The longer it takes to recapture $1,490-$1,500 the higher the chances to break below $1,450-60 support. Next downside target would be around $1,410 if support fails to hold. So keep a close eye on this.