Gold slipped at the beginning of Wednesday trading session as a stronger dollar prevented the metal from holding its overnight gains, as the gold recovered to trade near three-week high around $1204.
The dollar gained against a basket of major currencies on Wednesday, with the yen sliding to a fresh seven-year low against the greenback. But after that, the Gold bounced back while the dollar rose against a basket of major currencies on, with the yen sliding to a fresh seven-year low against the greenback.
The Gold recovered toward the expected target of $1200 per ounce, that we have mentioned in our technical analysis yesterday. the Gold has faced a barrier around the resistance level , then entered within a a downward correction step toward $1196. And at the beginning of today’s trading session, we expect that the Gold will retest the $1200-$1206 area which will represent good opportunities to enter sell positions, as the Gold is expected to resume its general bearish trend below $1196 and $1189. As se can see on the 30 minutes chart, the Gold is trading within a Triangle, and we expect a decline of the prices below $1190 after testing the above mentioned levels.
