Gold price got rejected at the horizontal resistance of $1,758 and is now pulling back. Price could very well pull back in order to form a higher low as we explained in our previous post. This pull back could see Gold price reach $1,700-20area. Now Gold is trading at $1,731.

Red lines -Fibonacci retracements

Green lines- bearish channel

Red rectangles - touches on blue resistance

Gold price has already retraced 38% of the latest move higher from $1,677 to $1,758. Gold bulls want price to create a higher low in order to gather momentum for the next leg higher towards the upper channel resistance around $1,780-$1,800. Gold price could continue its pull back towards $1,711 and the 61.8% Fibonacci retracement level where we think would be ideal for bullish reversal. Traders wanting to bet on the bullish side better wait for price to move a bit lower towards the key Fibonacci support of 61.8%.