Gold or Go?

The bullish move that started in November remains alive but ever since resistance came into the equation last Tuesday, bears have been making a move and prices in Gold have already pushed below a couple of key support levels. There’s more support potential a little lower, around 1725-1727, but Gold bears are now working on their fourth consecutive day of losses and given related themes in rates and the US Dollar, the fundamental backdrop may be shifting in a less-friendly manner for bulls.

I had looked into gold prices coming into the month of November, highlighting bullish potential as price action had built a falling wedge formation while holding and respecting a key spot of support. Prices put in a strong bounce a couple of days later, following another failed breakdown at 1622, and that led to a visit to resistance, as taken from a bearish trendline connecting February and October swing-highs.

The following Monday saw continued grind at that level but the next day led to a strong topside breakout and that move ran for the rest of the week. Gold bulls even continued the move into the next week, which was last week, until resistance finally started to come into the equation around the same 1786-1794 zone that was support in February and May of this year.