Red line- resistance
Blue rectangle- horizontal resistance
Gold price was challenging the short-term horizontal resistance of $1,725-27 over the last couple of sessions. The week started strongly as it ended but bulls were unable to hold price above $1,727. Today's Dollar strength affected by the higher CPI numbers, put pressure on Gold. Today Gold price is getting rejection signs and is now challenging short-term support at $1,710-$1,705. As long as Gold price is below $1,727 it will remain vulnerable to more downside. Are these pressures on price going to last? Recent price action has confirmed the importance of resistance at $1,727. Next time Gold breaks above it we will be more certain that the signal is valid. Until then we remain bearish Gold.
