GOLD TECHNICAL ANALYSIS

Gold started its bullish run at the beginning of April and extended it to May, reaching the yearly high of $1916 per ounce. With the bullish market in play, a deep pullback is imminent on Gold as the price couldn't go beyond $1910 after several attempts.

Buyers lost their momentum as June begins, giving room for short sellers to take over the market while the bulls await a lower and better price to push the price back up.

According to the Commitment of Traders report (COT report), non-commercials i.e., Banks are closing their long contracts on Gold. They are adding more short positions instead. This is a shift in the market as price reacts accordingly. The price of Gold fell from $1903 to $1875 last week, with more downside coming this week.

Bulls' failure to extend price beyond $1910 per ounce at the beginning of June made the price of Gold crash to $1856, its lowest price in two weeks. Further attempts by the bulls to push the price back up failed as the precious metal couldn't get to its recent high.

Gold crashed from $1900 to $1874 on Friday and is currently trading at $1864, going lower as the market opens during the Asia session. More downside is most likely in the coming weeks and likely to fall to $1840, where the next support level lies.

The overall trend is still an uptrend on the daily timeframe. A short-sell is imminent on the precious metal before the original trend resumes again.