Gold Price Analysis: Elliott Wave analysis shows the $1725.96 level is an important resistance zone
Gold has been pushing higher in the last couple of sessions and now the bulls have broken back above the USD 1700 per troy once level again. At the moment on the chart below the 200 Simple Moving average is providing some resistance as the bulls gain control.
The main resistance on the chart is the red horizontal line at USD 1725.96 per troy ounce. This is where the wave 1-2 low resides and if broken would negate the new longer Elliott five-wave pattern to the downside and insinuate the move is an ABC correction down to USD 1670.76 per troy ounce. The good news is it won't be too long till we find out as the market is only USD 10 away from the zone at the time of writing.
Gold gaining ahead of tomorrow’s Fed release
The gold futures contract gained 1.31% on Monday, as it retraced some of its last week's Friday's decline following much better than expected U.S. monthly jobs data release. Global markets went risk-on and gold has sold off as a safe-haven asset. On Monday a week ago the price has reached slightly above $1,760 and Friday's daily low fell at $1,671.70. Gold continues to trade close to the bottom of its medium-term consolidation.
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