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.
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