Gold Price Faces Crucial Challenge

Gold price recovered well during the past few sessions, and moved above $1230 against the US Dollar. However, the price is now facing a monster resistance near $1235-36.

The stated levels acted as a hurdle on many occasions as shown in the hourly chart. So, it won’t be easy for buyers to break $1236 for further upsides.

On the downside, there is a bullish trend line formed at $1232-30, which also coincides with the 38.2% Fib retracement level of the last wave from the $1226.80 low to $1235.50 high.
If there is a pullback from the current levels, the trend line support at $1230 might play a major role. A break below it could spark a short-term reversal. So, we can say gold price is reaching a breakout point either above $1236 or below $1230.

 

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