Gold price is bouncing towards $1,775 today. Price made a low at $1,741 where we also find the 61.8% Fibonacci retracement. Short-term trend remains bearish and price vulnerable to more downside. Bouncing off the 61.8% level is a promising sign for bulls, but if price fails to hold $1,740, we should expect price to be under heavy pressure.
Gold price could very well have bottomed already and starting its next leg higher. For this scenario to come true bulls need to defend recent lows and eventually break above the resistance of $1,808. Only by breaking this resistance we will be more confident of any potential upside in Gold. Until then, price is vulnerable to making a lower high and pushing to new lows.
