Gold May Witness a Temporary Decline

Gold prices managed to achieve strong gains during last Friday’s trading, surpassing the official target required to be achieved during the previous analysis at the price of 1836, recording its highest at the price of 1843.

On the technical side today, and by looking at the chart at the 240 chart, we find the stochastic indicator is trading around clearly overbought areas, and we find the price is stable intraday below the resistance level 1836.

Consequently, we may witness a bearish bias in the coming hours with the aim of retesting 1817 before attempting to rise again. It should be noted that the scenario of a bearish corrective trend does not contradict the daily bullish trend, with initial targets around 1856, if the price manages to breach 1843.

S1: 1817.00	R1: 1843.00
S2: 1805.00	R2: 1856.00
S3: 1791.00	R3: 1870.00