The price of gold is likely to see more gains in the short-term, following last weeks strong close above the $1,840 resistance barrier. A bullish inverted head and shoulders pattern has formed across the lower time frames and is pointing to the $1,875 level as a near term target. Overall, gold looks to be a strong buy on pullbacks, especially after last weeks strong recovery from just under the $1,810 level.
XAUUSD is only bullish while trading above the $1,820 level, key resistance is found at the $1,875 and the $1,890 levels.
If XAUUSD trades below the $1,820 level, sellers may test the $1,810 and $1,800 support levels.
