Is Gold Finding a New Resistance Level?

The Gold price has had a nice run over the last couple of weeks since it Sprang Upwards with Fresh Momentum after taking out its previous All-Time-High. I've been watching with great interest to see how strong the rally would be and I have been looking for signs that might indicate how far it might reach to. Today has been an interesting day for a couple of reasons but on the chart I do now see something that might be significant.

Now admittedly, the above chart is only a 1 Hourly chart so these are pretty soft short timeframe signals but that doesn't mean they should be ignored. Yesterday the price had run up to touch the $3,700 USD level via what I'm calling a "Soft Kiss" before pulling back slightly. That's not really a big deal in isolation but a short time later it went through $3,700 and then had a sharp reversal. Now again a day later there was another attempt getting through and an even sharper reversal. The reason I call them sharp is because remember - this is a 1 Hour chart so all the action in those big red candles has happened within the space of 60 minutes.

From a Technical Analysis perspective big red Hammer Candlesticks like these can be interpreted as being Bearish but there was also a fundamental reason why the 2nd reversal was so sharp - The US Federal Reserve announced a 0.25% Interest Rate Cut. This was largely expected by the market so that 2nd red candle could be a "Sell the News" type of move or it might also be in reaction to some of the comments that were made by Chairman Powell. Regardless, I think it was more of a news driven move so we aren't purely looking at TA for that one.

For me, I am not too concerned and I remain optimistically bullish on Precious Metals because nothing has really changed in my outlook. However I know prices can move in fits and starts so after a good little run over the last 2 weeks it would not surprise me to see $3,700 emerging as a stubborn short term resistance level and maybe it'll keep a lid on Gold for a couple of weeks. It will be interesting to see.