Gold price reached as high as $1,870 earlier today but price is now showing reversal signs. As we mentioned in previous posts, the area between $1,860 and $1,870 is important resistance area and I expect Gold prices to get rejected and make a reversal.
Black lines- Fibonacci retracements
Gold price has reached and surpassed the 61.8% Fibonacci retracement but not for long. Price is showing rejection signs at the red rectangle area and where we also find key Fibonacci retracement levels. Support is at $1,850. Resistance is at $1,870. Breaking either of these two levels will lead to an increase in volatility. Breaking resistance could lead Gold towards $1,900, while a break below $1,850 will lead Gold price towards $1,820-$1,800.