Gold price broke the bullish flag pattern but as we explained in our last analysis, there were many warning signs that made us expect a move to $1,535 to be enough and that a possibility of fake break out was high. This is exactly what we got.
Blue rectangle – resistance
Gold price reached our $1,535 target. Gold price sharply reversed and fell towards $1,480. Resistance is at $1,510. The break out above $1,510 was most probably a fake one and price is most probably going to move lower. As long as price is below $1,510-20 area I expect to see more selling pressures. Failure to hold above recent low at $1,480 will confirm our bearish view on Gold. Bulls were warned to be cautious. Recapturing $1,510 is important for bulls if they want to continue their up trend towards $1,550.