Gold hits pivotal resistance barrier 6/5/2022

Gold prices managed to achieve the first target required to be touched during the previous analysis, at 1910, recording its highest level at 1910. To remind, we indicated during the report issued yesterday that the price behavior of gold should be monitored around 1910 due to its importance to the general trend on the intraday term, which forced Gold prices are trading with noticeable negativity after touching it to return to the test of 1866, as we mentioned yesterday that trading below 1890 puts the price under strong negative pressure to target 1872, recording its lowest level at 1866 during the early trading of today’s session.

From the angle of technical analysis today, and by looking at the 240-minute chart, we notice the price stability below 1890, 61.80% Fibonacci correction, as shown on the chart, and the price stability below the 50-day simple moving average.

Therefore, there is a possibility of a bearish tendency during today’s trading session, knowing that breaking 1866 extends gold losses. We are waiting for 1860 first target, and then 1850 next stations whose targets may extend later to visit 1840.

Rising again above 1890, and most notably 1902, leads gold to a temporary recovery to visit 1910, and the price behavior should be monitored around this level due to its importance to the general trend on the intraday basis, and its breach opens the way to touch 1925, 50.0% correction.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 1860.00	R1: 1902.00
S2: 1841.00	R2: 1927.00
S3: 1816.00	R3:  1945.00