Gold Broke Out To a Daily High But Now Facing Retracement

In the last few days, the precious metal has been on a slump before today. It was in a buildup ranging movement at first but then shot out to a high of 1778.4 indicating a strong upward movement. However, gold is now retracing back to the 1767 level– possibly a short pullback before it goes higher.

As the USD is the reverse of the precious metal, a weak USD was able to help gold push higher.

Technical Outlook

After reaching a high of 1778, the price has reached back down to 1767. The next level to look out for before a possible move higher is the 1761 to 1763 level. If it does choose to edge higher, then the next resistance level that we have to watch out for is the 1800 to 1803 levels. So far, the bias of the precious metal still remains mainly bullish. The movement is bearish because of a pullback, but it remains to see how long the pullback may last.

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