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  • Gold’s daily chart suggests pullback from record highs has run out of steam. 
  • A break above Wednesday’s high is needed to confirm bullish reversal. 

Gold is currently trading around $1,938 per ounce, representing a 1.2% gain on the day. Prices have recovered 4% from the low of $1,863 reached on Wednesday. 

Even so, it is too early to call a bullish revival. That’s because the yellow metal is yet to rise above $1,950 – the high of Wednesday’s spinning bottom candle. 

A spinning bottom candle occurs when an asset sees two-way business but ends the day with marginal to moderate gains or losses. It is widely considered a sign of indecision in the market place. 

In gold’s case, however, it could be taken as a sign of seller exhaustion, given it has appeared following a notable pullback from $2,075 to $1,863 and marks a bear failure to penetrate the ascending trendline connecting March 20 and June 5 lows. 

As such, a close above Wednesday’s high of $1,950 is needed to confirm a bullish revival. That will likely invite stronger chart-driven buying, yielding a break above $2,000. 

On the downside, support is located at $1,913 (Asian session low) and $1,900 (psychological support). 

Daily chart

Trend: Bullish above $1,950

Technical levels