With Gold benefiting from the weakening USD, the commodity has risen but gained resistance at 1,241.
Add to this the concern for global growth slowdown and investors seeking safe haven and Gold is seeing volatility as traders watch the charts.
Up to a high so far today at 1,241.30, just within the resistance area of 1,240 – 1,250, Gold met its bulwark, and is now starting to buffer the resistance and retreat slowly, touching 1,240.80 twice in the morning.
This has confirmed to the market that this is a reliable resistance area and allowed a bearish sentiment to take control. The reversal pattern is in process but still needs to be confirmed.
The key support level of Gold is still 1,180. Any attempt to break this important level to the downside, in such a scenario, will activate selling all the orders clustered below 1,180, raising the odds to see a lower reading, which may lead to a potential target of 1,050.
Smart money will seek to review positions below the support level or if Gold bucks the resistance level.