Gold price chart shows sign of another correction
Before taking off towards 2,000 $, the gold price might test 1,789 dollars again.
Should bear pressure increase and break the $ 1,818 level, the price could fall to the support levels at $ 1,789, $ 1,741 and $ 1,680. Should the bears fail to break the $ 1,818 level, the price could move further towards the $ 1,845 resistance level before testing the $ 1,873 resistance level. On the long-term outlook, gold is bullish. The yellow metal began to favor buyers after the double-bottom chart pattern formed. The strong bullish engulfing candle on the daily chart, formed on July 5th, triggers the price rise towards the significant resistance level of $ 1,818 after breaking the former resistance level of $ 1,789. The price made a fake breakthrough on July 14th at the price level of $ 1,818. The gold market pulled back before the weekly market closed. The gold market closed with strong bearish momentum below $ 1,818 and directly tested the 9-period EMA and the 21-period EMA as seen on the daily chart; this suggests that the bears were pulling back on gold. Should bear pressure increase and break the $ 1,818 level, the price could fall to the support levels at $ 1,789, $ 1,741 and $ 1,680. In the event the bears fail to break the $ 1,818 level, the price could move further towards the $ 1,845 resistance level before testing the $ 1,873 resistance level. The price of gold is on the downside on the 4-hour chart. Bullish momentum has been gradually interrupted by the bears just above the $ 1,818 price level. Bearish momentum has pushed the price below the two dynamic support levels. The price moves towards the $ 1,789 support level before the gold market closes.