Gold price respects support and bounces as expected.
Gold price today tested the key support and stop level at $1,882. Price bounced off the support area and is now back above $1,900. However bulls will need to continue to support price and show more strength by breaking above $1,912. If we do not see any sign of strength soon, I expect price to break below $1,882.
Green rectangle- support
Red rectangle – bounce target
Gold price is still inside the bullish channel. Price bounced off the key support shown by the green rectangle in the chart above. Price needs to continue making higher highs and higher lows if we are going to achieve our target at the red rectangle. A break below $1,882 will open the way for a move towards recent lows at $1,850.
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