The precious metal fell 3.08% in only three trading sessions, it managed to break three support levels just to find support at the 61.8% Fibonacci Retracement, after that, Gold regained some ground and broke the 50% Fibonacci Retracement resistance, and is now aiming to break the 38.2% at $1,817.77.
The Bollinger bands are wide and slightly opening up, which would bring higher volatility to the pair. Gold was trading closer to the lower band, suggesting that its price was relatively low, a reason why we see a small comeback from the precious metal. The pair trades inside the Ichimoku cloud, which can be interpreted as market uncertainty.
The relative strength index is at 46% which would allow the price of gold to climb in the short to mid-term. The pair is now on a two-day winning streak; however, our Parabolic SAR indicator suggests that the price will continue to fall in the short term, we would need more long signals in order to place a trade.
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