The price of gold rallied since last April and did not look back until it reached $1,900. The bullish trend started from a double bottom below $1,700, and the move higher formed a series of higher highs and higher lows, typical for a bullish trend.
Yet, the recent rejection after the third attempt to close on a daily basis above the $1,900 was so strong that it broke the higher lows series. Because of that, the gold price remains bearish while below $1,900, with the prospect of a triple top in place.
It is not by chance that we talk about the price of gold today. The yellow metal serves as a hedge against inflation, and inflation is on everyone’s lips lately. Later today, in the North American session, the US inflation data for the month of May may show that the prices of goods and services in America have risen by 0.4%, respectively 0.5%, as shown by the headline CPI, respectively the core CPI.
Any deviation from the forecast is supposed to bring volatility both on the US dollar pairs and the price of gold.
Gold Price Technical Analysis
Bears may want to stay short with a stop at $1,900 and target a move back to $1,700. On the flip side, bulls may want to buy a close above $1,900, with a stop at $1,875 and a take profit at $1,950.