Gold continues to show a short-term bullish bias as bears have not yet managed to sustain a push below the crucial $2300 psychological level. However, from a longer-term perspective, this bullish scenario may be shifting, and the monthly chart is particularly noteworthy in this context.
On the monthly chart, observe the two extended upper wicks for April and May, indicating significant selling pressure at higher levels. June's price action, so far, remains within the range of the previous month, suggesting a potential pause or consolidation. It's also important to note that the prior range resistance, situated around $2075-$2090, has not been re-tested following the decisive breakout in March.
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Switching to the daily chart, there are technical formations worth noting. There's a backdrop resembling a head and shoulders pattern, along with a short-term bear flag that appears to be developing. The key support level remains between $2286 and the $2300 psychological mark, as highlighted in the accompanying chart.
If sellers manage to push the price below this critical support zone, it could open the door for an eventual re-test of the prior range resistance around $2075-$2090. Despite the recent drop, the Gold-Dollar pair decreased by 0.4% in the last session, and the MACD indicator is showing a positive signal, suggesting possible upward momentum.
In today's trading session, keep an eye on the release of new home sales data, which could influence market sentiment and potentially impact gold prices.
This analysis underscores the importance of monitoring key technical levels and market indicators to make informed trading decisions. Stay updated with the latest market insights to navigate the complexities of the gold market effectively.