It’s been a busy summer for gold prices. The yellow metal came into the season with a bit of hope. Prices had found a low in mid-May and buyers were starting to take control, bidding prices back above the 1800 psychological level and, eventually, up for a test of confluent Fibonacci resistance around the 1880 level.

But, as shared then, that recovery was un-even, and price action built into a rising wedge formation. Such formations are often tracked with the aim of bearish reversals – and reverse it did. A slalom developed in price action in mid-June and largely continued into the second-half of July. All the way until support came into play around the 1680 level. That’s a big price, as it’s now been tested on three separate occasions since gold topped out in the summer of 2020.

That support test led to another strong topside run. But, again, the move was uneven, and price built into a rising wedge formation.

That one began to break down earlier this month and last week was particularly painful, as gold prices sold off each day Monday-Friday. That weakness ran through this week’s open, with price moving all the way down to 1740 before starting to bounce.

GOLD EIGHT-HOUR PRICE CHART

Chart prepared by James Stanley; Gold on Tradingview

GOLD SHORT-TERM

On a shorter-term basis, we now have a resistance test at prior support, in a zone marked by two Fibonacci levels that creates a bit of confluence. This zone runs from 1763-1771, and there’s already been a response from sellers. A hold of resistance below 1763 through the end of today would keep the door open for bearish continuation potential, although that may be a bit early. Looking higher on the chart, and there may be more attractive spots for lower-high resistance, such as a test of 1771 or, perhaps even the support-turned-resistance that’s at 1785.

GOLD FOUR-HOUR PRICE CHART

Chart prepared by James Stanley; Gold on Tradingview

GOLD BIGGER-PICTURE

Taking a step back on gold and we’re in a range. This range has been holding since Gold topped out in 2020 and pulled back to support at 1680 in early 2021.

Given fundamentals, I’m biasing this range in a bearish fashion but that doesn’t come alive until sellers are finally able to test through support. If, and this is a big if, sellers can hold the line here, we may end up with that fourth support test in the 1680 area, and that test may finally allow for a bearish breakdown.

In the meantime, gold price action is essentially working within pre-defined technical criteria produced by this past two-plus years of range-like price action.

GOLD WEEKLY PRICE CHART

Chart prepared by James Stanley; Gold on Tradingview

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