Will the gold price struggle at this technical level

New York (July 8)  Gold is having another stellar session on Thursday and is currently trading just over half a percent higher leading into the U.S. open. This could mark the seventh straight day of price increases since the yellow metal hit the wave low of $1750.78/oz on 29th June.

Looking at the daily chart below there is a little sticky point the price is currently at. Here lies an internal downward sloping trendline that originates from the all-time high down to the wave high from 6th January. It has only had two touches so it is not the strongest but it must be taken note of. In addition to this, the orange horizontal rectangle has been a support/resistance zone so there could be a confluencing factor.

Overall, the short-term trend is clearly bullish but we have not cleared the 61.8% Fibonacci from the last impulse wave down. A breach of that could give the bulls more confidence. The next big hurdle for the bulls is clearly the wave high of $1916.53/oz. If this is tested the gold bugs may be back in town.

KitcoNews