Gold Price Analysis: XAU/USD bears in control in Asia

  • 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. 

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