Gold enjoyed a strong upward move last week but has run into a resistance at 38.2% retracement of the latest downward impulse on Friday. Precious metal continues to test this hurdle at the start of a new week. Moreover, $1,790 and $1,800 resistance levels can be found slightly above the aforementioned retracement. Gold looks to be executing a double bottom pattern following a break above the neckline of the pattern last week. A potential target of the pattern can be found at $1,833.
In case gold fails to break above the aforementioned 38.2% retracement and pullback starts, the first near-term support to watch is marked with the upward trendline. Yields are key drivers for gold price but traders should also track flows in and out of precious metals ETFs.
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Gold extends gains after breaking above the neckline of the double bottom pattern last week. Precious metals is testing 38.2% retracement at press time. Source: xStation5
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