FX.co ★ Gold price bounces as expected but gets rejected at previous highs

Gold price not only bounced towards $1,400 as initially expected, price reached the 2019 highs but got rejected. Gold price has made a double top and under certain circumstances we could see this decline to continue towards $1,335.

Green line - major support trend line

Yellow rectangle - target if support fails to hold

Gold price is trading near $1,415 after reaching $1,437. Price made a double top and is showing rejection and reversal signs. Support is at the green trend line at $1,393. Breaking below this level will increase dramatically the chances of moving towards the 61.8% Fibonacci retracement level around $1,335. Breaking below $1,384 will confirm this view. On the other hand as long as price is above $1,400-$1,393 the bullish scenario for an immediate move to $1,500 is still open.