Gold (XAU/USD) is currently treading water at $4,633 after failing to make a clean break through the $4,668 ceiling. Take a look at those long upper wicks on the candlesticks and you’ll get a pretty good idea that there’s a buyer selling into the price near $4,670. And just to rub it in, the 0.5 Fibonacci retracement line conveniently lines up with $4,670, so you know where the roadblock is.
Momentum’s gone a bit flat – RSI is lingering around 46 – and the moving averages are stuck in neutral. But don’t get too comfortable at the lows of $4,536 yet – that 0.382 fib level is still looking like a useful support line. If you’re crazy enough to think about buying, you might just find yourself targeting $4,804 if you can somehow magically break through that pesky $4,670 resistance.