- Summary:
- Gold Price testing major resistance level at 1513.33 for the third time. Can the bulls clear out the critical resistance and head north?
Gold prices started their free-fall after hitting the critical high at $1535.13 on 24th September 2019. The bearish rally extended nearly 100 dollars before gold prices hit the low of 1st October 2019 near $1449.50. From that level, the bulls gained the upper hand by capitalizing on the weak performance of the U.S economy and secured a new high on 25th October 2019 at $1513.33. For three consecutive times, the bulls tried to break above the major resistance level at $1513.33 but eventually failed to retain their momentum. Most importantly, in the last week, price formed a consolidation structure near the $1513.33 mark which is an indication the market has yet to decide its direction. And failing to clear the current resistance level might result in a ranging market movement.
If gold prices manage to break above the high of 25th October at $1517.85, we might experience a strong rally towards the next critical resistance level at $1556.76. This level might play a crucial rule since breaking above this level might require a strong fundamental catalyst. But a daily closing of the price above the high of 4th September at $1556.76 might change the overall market sentiment into the bullish mode. On the downside, failing to break above the critical resistance level at 1513.33, might push the pair towards the low 30th October 2019 at $1480. If the bulls fail to regain control from this level, chances are high the optimistic gold bulls will lose confidence.