Gold price was under pressure at the beginning of the trading session today and price pulled back towards the short-term support area of $1,548-50 area. Price respected support and bounces off that area challenging again the short-term resistance at $1,565-60.
Green rectangle – support area
Red Fibonacci extension – possible targets
Gold price has so far created a higher low with today’s pull back. Resistance is at $1,565-68 and a break above this level will push price towards $1,578 or even $1,598. Short-term trend is bullish and a move above $1,568 will confirm this strength. On the other hand bears want to see price break below $1,548 for a move towards $1,510. At this point I believe that the most probable and best scenario to trade, is the bullish one.