Current price: 4463
Key point: 4453
Our preferred strategy: Buy positions above 4453 with a first target of 4510 and then a second target of 4590.
Alternative scenario: Stop loss and trend reversal upon breaking the 4440 level, targeting the 4400 level.
Technical commentary
Gold has fallen from the downtrend line from its February peak, below the 200-period moving average on the four-hour timeframe, and is currently approaching the pivotal support level of 4453. If price action forms there and a higher high is created, the price will then form a head and shoulders reversal pattern, and gold will then head towards the 4510 level and then the 4590 level.
