FX.co ★ Gold price continues to respect support

Gold price has formed a head and shoulders pattern as we explained in our last analysis. So far Gold price continues to respect support and as long as the neckline is not broken downwards, we remain bullish.

Red line - neckline support

Gold price finds support at $1,927-20 area. As long as we do not break below this level we can go higher. Bulls want price to break above $1,950. Bears want price to break below the red support line. If support fails to hold, we should expect Gold price to reach $1,900-$1,880. If Gold price recaptures $1,950 on a daily closing basis, we should expect Gold price to move towards $2,000 and higher.