Gold Price Analysis: Under pressure in Asia after Friday's Doji
- Gold created a Doji candle on Friday, neutralizing the immediate bullish setup.
- A break under $1,710 would confirm a short-term bearish reversal.
Gold is trading near $1,722 per ounce, representing a 0.30% drop on the day, having hit a high of $1,729 during the early Asian trading hours.
The metal is flashing red, having carved out a Doji candle on Friday, a sign of indecision in the market place.
A bearish Doji reversal would be confirmed if the yellow metal closes Monday under Friday's low of $1,710. That would also confirm a head-and-shoulders breakdown on the hourly chart.
A bearish close, if confirmed, would open the doors for a drop to $1,658 the low of the long-tailed candle created on April 21.
Alternatively, a close above Friday's high of $1,736 would imply a continuation of the rally from the low of $1,658 and will likely allow a sustained move above $1,750.
Daily chart
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Trend: Bearish below $1,710
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
