After defending support, a drastic price decline in gold ended in mid-May at USD 1,780 and seamlessly transitioned into a dynamic recovery. After breaking the USD 1,858 hurdle and reaching the USD 1,875 level, the rise lost its momentum and turned into a flag-shaped correction. Last week, the bulls tried again to clear the resistance at USD 1,875, but were unsuccessful. Currently, gold is trending sideways below the hurdle at USD 1,858.
In order to favor a continuation of the recovery, the resistance at USD 1,858 must be broken through and another attack on USD 1,875 must be initiated. If this mark is cracked, a buy signal would be active and gains to 1,909 USD and 1,920 USD within a very short time would not be excluded. If this mark were also exceeded, even a summer rally to 1,959 and 1,973 USD would be in the starting blocks.
If, on the other hand, the gold price should fall below USD 1,835, a further rise would only be conceivable after a correction to USD 1,820. Below the mark, on the other hand, there would be a sell signal and a sell-off to USD 1,780 and lower.