In the last 24 hours, we’ve seen the gold price achieve its highest ever level, drop dramatically before recovering. Probably, the most important thing is that gold has shown a strong reaction after yesterday’s decline to the key level of $1,900. The price is now testing the resistance at $1,950. A new acceleration above $1,960 could open space for another rally to $2,000, while a fall below yesterday’s bottom would put gold in a dangerous situation. The quick fall seen yesterday helped technical indicators to recover from being in hyper-bought territory, while the price seems to be in a consolidation phase after the long rally.
