FX.co ★ Short-term view on Gold.

Gold price is trading around the short-term support of $1,800. Price briefly moved below the support towards $1,794. Price is vulnerable to a move towards $1,790 but I feel it is more probable to see a higher low around $1,790-80 than start a new downward move.

Red line - Fibonacci extension

Green line - expected path

My most probable scenario for Gold is to see a higher low being formed between $1,780 and $1,790 and then start a new leg higher towards $1,850-60. For this scenario to come true, we will have confirmation once price breaks above $1,824.50. Until then price is vulnerable to a move lower. Bulls need to be cautious.