Gold analysis

The price of gold declined significantly yesterday after breaking the 1,770.00 level, but it stopped at 1,753.00 and rebounded upwards strongly to settle around the EMA50, within the bearish triangle flag pattern that appears on the image. The Stochastic Indicator loses its positive momentum and appears overbought now. This forms a negative motive, which, we expect, will push the price down again.

Therefore, we will maintain the overall bearish scenario unless the price continues to rise to breach 1,788.00 then 1,797.00 levels. Our targets start with breaking 1,770.00 to open the way to rally towards 1,734.00 as the next station.

The expected trading range: between the support 1,755.00 and the resistance 1,797.00.

Expected general trend: overall bearish.