Gold Testing Support

I wrote back in February that gold would trade in the $1900 to $2000 for some time before braking out to the up side. But the gold price went as high as $2070 shortly afterwards, and it's now down at $1830, testing support. That's a miss of $70 to either side of the range. However, the trading range has in fact been relative steady in the core range. It was only briefly above it, and the drop below it is recent.

Looking at the monthly chart captured in February, we find that there should be strong resistance in the low $1800s, and that's where we are at the moment.

Monthly chart captured in February

My guess is that the support line will hold, and that we're about to see a new push towards $2100. The reason for this is that we've reached a point where the Fed cannot get much more hawkish. Combined with technical support in the $1830 range, gold is unlikely to go much lower.