Fan Yang
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Gold Retreating from Critical Resistance

Gold has been running up sharply after finding a price bottom above 1076. The daily chart shows XAUUSD rallying to almost 1700 before stalling. It met a critical resistance involving a psychological level, a previous support pivot and perhaps most importantly, a falling trendline that has so far been keeping 2015 price action bearish. 

Gold (XAU/USD) Daily Chart 8/25
(click to enlarge)

Will the trendline hold again to keep price action bearish at least in the medium-term? I think it is certainly worth considering this scenario. I would look at the intra-session charts now to look for more clues of price topping and get a good trade plan with good reward to risk, even if reward were to be limited to 1100 (being conservative). 

Gold (XAU/USD) 4H Chart 8/25
(click to enlarge)

The 4H chart shows a market that price topped only in the very short-term. If price can hold above 1130, we might see another attempt to push at resistance around 1700. For now, I would still be bullish on gold in the short-term until the price top action becomes larger. A failure to push at 1700 followed by another attempt to break below 1300 for example would add to my suspicion that gold is topping. I would be more comfortable in considering a short position after that. 

In the short-term, I would look for even shorter term evidence but of a price bottom. Looking at the 1H chart, the recent retreat is still in full force. Let's see if we see a small consolidation form in the 1H chart. A break upwards would suggest another attempt towards 1700 for me. 

Gold (XAU/USD) 1H Chart 8/25
(click to enlarge)