New record high leads to pullback
The new high on Thursday occurred near previously identified potential resistance zones derived from the confluence of several indicator targets. Gold surpassed the top price range of $3,043, but didn't go much before encountering resistance to stop the rise. Like all price levels, they should be considered as a field of potential price resistance or support.
Increased sales pressure
Today's bearish reversal is clear, reaching a 3-day low, natural gas appears to show an increase in sales pressure, leading to testing support at lower price levels. The largest low price target shown in the current analysis is the uptrend line (highlighted) at the bottom of the current parallel trend channel. It's about $2,924 today. However, a 38.2% Fibonacci retracement offers an initial, potentially low target of $2,792. Then the previous trend at $2,956 will be higher. What's even lower is a 20-day MA of $2,946 and a 50% retracement level of $2,945. Please note that the 20-day line is rising and that it may converge at a higher price level before being tested as support.
Rally above $3,058 improves bullish outlook
Signs of short-term bearishness begin to be denied at the lasting rally above at today's highest priced at $3,058. That might mean that Kim had a one or several days of correction before gathering to continue climbing. This can happen without the gold going much lower. Of course, sustained gatherings beyond today's highs are likely to lead to a breakout for new overpasses of over $3,058. Gold then heads towards the top of the upward channel, along with a confluence target zone of around $3,080.
To see all of today's economic events, Economic calendar.
