• The price of gold is struggling to break monthly and weekly resistances.
  • Bears are on the verge of taking full control, but daily resistance should be noted. 

The price of gold over the past couple of days has been in decline and tested the prior daily highs where rejection has seen a modest recovery, but still leaves the bears in charge for the foreseeable future.

The following illustrates why that is from a top-down analysis, taking the monthly, weekly and daily market structures into consideration. 

Monthly chart 

The monthly chart is testing the prior monthly lows and has so far been rejected. 

There are prospects of a downside continuation on persistent failures to break above the resistance. 

Weekly chart

From a weekly chart, the price is testing prior weekly lows to test a 50% mean reversion.

However, the weekly W-formation is a bearish chart pattern, at least to the prior highs and neckline of the formation. 

Daily chart

As illustrated, the price has formed new resistance where old support was. 

The bulls might be inclined to take on the bearish commitments for a restest of the structure for the opening sessions of the week.

Nonetheless, failures there are sure to keep the focus on the downside for a fuller restest of prior daily resistance. 

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