FX.co ★ Can Gold provide a new high?

Gold price is under pressure. Gold price has made a considerable pull back after topping above $1,600. The reversal candle was ugly and we warned bulls on time for possible reversal, taking into consideration the warning signals. But can Gold make another attempt above $1,600?

Red rectangle- short-term resistance

Gold price is making lower lows and lower highs. For Gold bulls to see price make new highs it is important to first break the critical resistance level shown with a red rectangle in the 4 hour chart above. Both RSI and Stochastics are bouncing from oversold levels, price has still not overcome the last high at $1,563. Only with a break above this level we could say that there are many chances of making another attempt above $1,600. Until then bears have the upper hand. Support is found at $1.535. Breaking below it will push price towards $1,500-$1,490.