Gold has been considered a precious commodity for millennia, and the gold price is widely followed in financial markets around the world. Most commonly quoted in US Dollars, gold price tends to increase as stocks and bonds decline. The metal holds its value well, making it a reliable, safe haven. But Gold prices have already plunged more than 1% since the start of the week, with XAU/USD poised to surpass February with the most significant monthly decline since November of 2016. The losses have taken gold prices from uptrend resistance back into uptrend support in just a month, with the bears vulnerable here at support into the June close. XAU/USD traded lower on Tuesday, reaching once again the key support territory around $1770 per troy ounce, which has been stopping the bears from driving the metal lower. On the 4-hour chart, we see that gold has been trading sideways since June 17th, between $1770 and $1795. Yesterday the key support zone was breached, but the price fast bounce back to the same level. With all these technical signs in mind, we would consider the short-term picture to be cautiously pessimistic. It would be interesting how the price will react in the following next days. A clear dip below the key support zone of $1770 would confirm a forthcoming lower low on both the 4-hour and daily charts , which may encourage the bears to push the action towards the $1724 zone. If they don’t stop there and manage to overcome that obstacle, we may experience extensions towards the $1680 area. In order to start examining whether the bulls have gained control, at least in the short run, we would like to see a precise recovery above $1795, a resistance marked by the inside swing low. This could pave the way towards around $1845, the break of which could carry more bullish implications, perhaps setting the stage for the $1910 territory.
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