• Buyers cautious after the pullback from the all-time high recently
  • Gold prices are range-bound in August.

Gold price is now near a critical support area of 1920-1941 dollars; the prices fell immediately after touching a fresh all-time high at the start of August. The prices had formed a bearish engulfing pattern near the all-time high, and sellers have gained control of the price action since then.

The pattern indicated a strong pullback possibility as an overbought trend was in play. Then, the gold prices fell by around ten Percent in a week and looked like a dramatic move. But, the sell-off soon abated, and buyers came in around trendline support.

The price action, as mentioned earlier, is finding support near 1920-1941 dollars, and 1987-2009 dollars are acting as the resistance.

Whether Gold bulls will wait further for a deeper retracement or act now is the moot question as we are probably in an over-bought (or over-sold?) price level.

But, as we were in an aggressively bullish prior trend, whether it would resume or not could be determined by the headlines. This week Jackson Hole Economic Symposium conducted virtually has a good presence of ‘who is who’ in Global Central Banking.

This event will help set the course of gold prices in the days ahead, with a move above 2009 dollars bringing back the bulls in hordes.