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FX.co ★ Gold price bounces but remains below key resistance trend line.

Gold price bounces but remains below key resistance trend line.

Gold price gave us a short-term bearish signal yesterday as it broke below $1,895 support and could not hold above $1,900. As we have said many times before, the $1,900 level is an important junction as it was once key support and is now key resistance. Bulls need to hold above this level.

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Red line -resistance trend line

Red rectangle - resistance area

Gold price got rejected at the resistance trend line and the resistance area. Bulls need to form a higher low to gather strength and then attack and break above the resistance. Inability to break above the trend line resistance will increase selling pressure on the precious metal. Support is at $1,870 and if bulls fail to hold this level, then we should see Gold reach $1,850.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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