Technical outlook:
Gold has been trading within a tight range between $1,700 and $1,720 during the last two sessions. The yellow metal is seen to be hovering around midway at $1,707 at this point of writing as the bears prepare to break below $1,700 in the near term. Immediate resistance is seen at around $1,730, followed by $1,735. The metal is expected to remain under pressure until prices consolidate lower.
Gold is also seen to be oscillating sideways at a larger degree between $1,615 and $1,730 as seen on the 4H chart here. Prices need to clearly break the above larger trading range to decide upon a further direction. A push through $1,735 will open the door towards $1,800 to complete a larger-degree corrective structure before reversing lower again.
Gold is ideally working up on its immediate upswing between $1,614 and $1,720 as seen on the chart here. Prices are expected to retrace lower towards $1,690 at least and up to $1,670 before the metal finds some support again. A break below $1,700 will confirm and accelerate a further selloff.
Trading idea:
Potential drop to $1,690 and $1,670 against $1,735
Good luck!
