FX.co ★ Gold starts the week in a strong note

Gold price ended last week with signs of strength and at the beginning of this week the bullish momentum continues. However we believe that this is most probably just a counter trend bounce. Major resistance is found ahead at $1,850 as we have been saying for some time now.

Black lines - Fibonacci retracement levels

Gold price is bouncing strongly towards the red resistance trend line. $1,850 is the resistance by the trend line and $1,840 is the 61.8% Fibonacci retracement resistance level of the last leg down. Breaking above the 61.8% Fibonacci retracement level is key for the short-term trend. Such a break out will be supportive of the bullish momentum. Bulls will gain more chances for a move above the key pivot level of $1,850. We observe for several weeks now a great battle around $1,850 key level. A rejection at $1,850-40 area will lead to a move back towards $1,750.