Since August 2020, gold has been unsuccessfully testing a resistance zone in the 1900-200 range. Attempts to storm it continued in November 2020 and January 2021. The last time the resistance was challenged in late May and early June this year, after which the quotes went down.
It is worth reminding that the first attempts to break the point of 1900 was made in 2011, based on which it is possible to suggest that the level grounded itself and started living its own life.
Among fundamental factors, it is worth mentioning that 85% of all positions with this metal among individual traders are buy positions, which implies a great potential for a descending move.
The target of this movement is likely to be a support level of 1500 pips, and the signal may work out in the following 1.5 years.