The Technical Analysis
As previously advised price action is approaching the .618 Fibonacci level at $1900 US, which offers a significant level of support and you could expect further price volatility.
The .618 Fibonacci level was resistance previous on 11th May where price went down and the subsequently recovered.
This $1900 level is also significant because at this level the price of Gold was at his highest at $1900 – $1980 at troy ounce back in 2011. So again you can expect some market reaction to this price.
However proceed with caution. The current trend is still Bearish (further downside expected) for a technical perspective it could be expected that price would bounce of this level and continue up, yet there is no fundamental reason for price to turn around at this point and be Bullish (further upside).
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