- Gold is meeting a wall of resistance at the start of the week.
- Bears eye a 61.8% Fibonacci retracement level and the confluence of old resistance.
The price of gold is on the backfoot despite a weaker US dollar at the start of this week and the prospects are for a significant correction to the downside.
Failures at resistance have so far proven to draw in additional bearish flows and speculative shorts.
Gold, daily chart
The bulls are facing a wall of resistance and the price could be drawn to a restest of the prior support and a 61.8% Fibonacci retracement.
Bears can engage from below hourly resistance.
Gold, hourly chart
Bears are in control below the hourly resistance after making a 38.2% Fibonacci retracement of the latest bearish impulse.