The precious metal gapped higher at the open today in an attempt to break out from the confines of the current highs.
However, after rising to intraday highs of 1762.96, price action is pulling back sharply. This could potentially result in a doji candlestick pattern.
The gains remain limited despite gold prices breaking past the upper end of the range of 1747. Unless support is established at this level, we do not expect to see any strong gains coming its way.
In the event of a breakdown below 1747, we expect the downside to come under pressure, potentially exposing gold to further declines.