Gold is suffering steep reversal today, on strong rally in stocks and treasury yields. The break of 1906.74 resistance turned support in such a short time was unexpected. More importantly, the development now raises the possibility of rejection by 1965.50 structural resistance.
Focus is now back on 1856.98 support. As long as this level holds, we’d still favor the case that correction from 2075.18 has completed at 1764.31. That is, another rise should be seen sooner or later through 1965.50 to retest 2075.18. However, firm break of 1856.98 will put gold back below 55 day EMA. That would flip favor to the case that correction from 2075.18 is still in progress, for another low below 1764.31 below completion.
