Gold price is pulling back after making a top at $1,874. Price so far has retraced 38% of the entire rise from lows at $1,763. Price bounced off the 38% Fibonacci level but got rejected once again at the major turning point of $1,850-60.
$1,850-60 was important support and now is important resistance. It was expected that Gold bulls would not be able to break above the resistance with the first try. Gold price will most probably pull back deeper towards $1,800 and the 61.8% Fibonacci level. As long as price is below $1,850-60 Gold is vulnerable to a move much lower towards $1,725. What bulls are looking for now? They need to defend the $1.800 level and form a higher low in that area. This is the best area to look for longs and an upward reversal for Gold bulls. Time to stay on the sidelines and let price unfold its moves. Patience is a virtue. Traders need patience.
