Gold price is trading around $1,960. Last week we mentioned that Gold price justified a reversal towards $1,950 and that bulls had to be careful as a pull back was imminent. Last week price closed around $1,987 after trading as low as $1,958. At the start of the week Gold price is under pressure.
Black lines - Fibonacci retracements
Gold price is challenging the horizontal support area and the 38% Fibonacci retracement. The double top of October-November 2021 is key support now, combined with the Fibonacci 38% level, increases the importance of the support. Breaking below $1,950 where the 38% Fibonacci level is found, will be a bearish sign and we should then expect Gold price to at least move lower towards $1,910 or even $1,870. Last week's long upper tail candlestick pattern suggests that an important top is in and that a corrective phase has started.
