Gold price is trading around $1,935-40. Price is bouncing higher after the sharp decline from $2,070 to $1,894. Gold price is moving towards the resistance area of $1,960-77. Short-term support is found at $1,925. Bulls do not want to see price break below it.
Red lines - Fibonacci extensions
If Gold price breaks above $1,950, then I will be expecting price to move towards the 100% extension higher towards $1,977-81 area. A rejection at the blue resistance area would be a bearish sign. If Gold bulls manage to form new higher highs and higher lows then we could see the start of a new upward move. Currently I prefer to be cautious as there are increased chances that Gold gets rejected at the resistance area. If bulls manage to overcome it, then I turn bullish.
