FX.co ★ Technical analysis on Gold for May 23, 2022.

Gold price has reached our first short-term bounce target at $1,850. Price has made an upward move equal to the first one, reaching the 100% extension. Gold price is making higher highs and higher lows.

Red lines- Fibonacci extension targets

We noted this bullish setup in a previous analysis we posted. Price is now trading above the short-term resistance towards the Fibonacci extension targets. So far the 100% level has been reached and there is potential for price to continue higher towards the 161.8% level towards $1,885. Support is at recent higher low at $1,806. As long as bulls manage to defend this level, we remain optimistic for a continuation of the upward move towards $1,885-$1,900.