FX.co ★ Gold under pressure

Gold price has broken the key short-term support at $1,910-$1,900 and is now approaching our target area of $1,850-$1,800. It was expected for Gold to be under heavy pressure if price were to break below the support that was tested four times.

Red lines -expected size of downward move

Gold price has broken the triangle pattern to the downside. Gold is in bearish short-term trend. Price is expected to move lower towards $1,850-$1,800 as we explained in previous analysis. The weakness to overcome $1,960-70 was the first warning signal to bulls. The second and most important sell signal came once price broke below the triangle and the $1,900 level. This level is now resistance. Bulls need to recapture it if they want to have any hopes for a move higher.