Gold price got rejected at the 38% Fibonacci resistance level at $1,960 and is now trading below $1,940. Trend remains bullish in the short-term as price makes higher highs and higher lows. Bulls need to break above $1,960 but bears need to break to new short-term lower lows.
Blue rectangle- horizontal resistance
Gold has so far retraced 38% of the entire decline from $2,070. The upward bounce from $1,894 could very well be complete and Gold could be starting its next leg lower. As long as Gold price is below $1,960 we remain pessimistic as Gold will be vulnerable to more downside. If bulls manage to reclaim $1,960, we should then expect Gold price to reach $2,000 at least.
