The gold price has marked this year’s longest consecutive bullish streak over the past two weeks, helped by markets’ risk-off sentiment, hitting a 14-month high of 1348.27 on 7th June.
Nevertheless, investors’ risk-on sentiment has been lifted this week as the US president Trump suspends threats of Mexico tariffs. The ease of US-Mexico tensions curbs safe havens.
The gold price has seen a nearly 1% retracement on Monday, falling below 1330. On Tuesday during the European session, the bears keep on marching and hit a one-week low of 1321.27.
On the daily time frame, the gold price has formed a double top pattern (the highs from 20th February and 7th June), indicating increased selling pressure above the resistance line at 1346. In addition, the Stochastic Oscillator indicator (the daily time frame) shows a retracement.
As of writing, the bears are still in control and test the support line at 1320. If the level is broken, the bears will likely further test the next support line at 1310.
Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg
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