Current price: 4325
Key point: 4300
Our preferred strategy: Buy positions above 4300 with a first target of 4450 and then a second target of 4550.
Alternative scenario: Stop loss and trend reversal upon breaking the 4250 level, targeting the 4150 level.
Technical commentary
Gold fell sharply during today's trading session, having risen to historic levels last week of 4550, then falling from there to break the support levels of 4450 and then the support levels of 4350.
The price reached the upward trend line from the low of last August and is close to the 200 moving average on the four-hour timeframe.
If the price resumes its upward trend and breaks above 4350, it will then head towards 4450 and subsequently 4550.
