Having witnessed a fakeout to the upside from a rising wedge formation on Tuesday, bears took charge and triggered a corrective decline in the Gold price on Friday.
In doing so, Gold price closed the day below the lower boundary of the wedge, then at $1,940, validating a rising wedge breakdown. The natural tendency of the rising wedge is usually to yield a downside break, which eventually materialized on the United States Gross Domestic Product release.
Gold sellers need to crack a strong support near $1,918 to challenge the weekly low at $1,911. Should the correction deepen in the Gold price, the $1,900 round level could be put at risk.
With, the 14-day Relative Strength Index (RSI), however, in the positive territory above the midline, Gold price still remains a good buying opportunity on pullbacks.
On the upside, powerful resistance near the $1,950 psychological barrier remains a tough nut to crack for Gold bulls. Ahead of that, Gold price needs to find acceptance back above the $1,940 round figure.
A firm break above the $1,950 hurdle will call for a test of the next resistance placed around April 20 2022 highs near $1,958.
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