FX.co ★ Gold challenges lower triangle boundary

Gold price is trading at $1,923 challenging the lower triangle boundary at $1,920 area. It is important for bulls to see price recapture $1,930-40 otherwise price will be vulnerable to a pull back towards $1,900 and lower.

Gold price is challenging critical short-term support. Breaking below $1,920 will open the way for move towards $1,900 and maybe towards $1,880-50 area. Currently we continue to consider this sideways move as a pause to the bullish trend Gold was in. However Dollar strength by the announcement of the Unemployment rate is not in favor of the bulls so far. Price looks weak and ready to break support. We must remain cautious and wait for price to give us a sign, bearish or bullish, and not try to front run the market.