FX.co ★ Gold price rejected at $1,900 resistance

Gold bulls managed to push price briefly above $1,900 today but as we previously said, the $1,900 level is very important resistance. The first signs we have from this test are not optimistic for bulls as price got rejected.

Green rectangle - short-term support

Although price got rejected at the key resistance, bulls still have hopes for a move higher as price is still above the key short-term support shown in the 4 hour chart above as green rectangles. Bears not only need to defend $1,900, they will need to push price below the $1,870 level initially and below $1,850 later, in order to hope for a move towards $1,800. For the time being price is making higher highs and higher lows. It is not wise to be very optimistic now as price has reached key resistance area, but bears also should not get carried away thinking that this rejection is a reversal sign. Bears need to see price break below $1,870 in order to confirm the reversal and the end of the bounce.