Gold Facing Resistance

Gold has reached our target of $1770, and as predicted, is having trouble with this level. We are running into resistance as we push toward a previous value area. The price action is rounding off and the Kovach OBV, though still strong, is tapering, suggesting that we will range or retrace. A significant retracement could take us all the way back to $1720, or $1705, the base of the sickle pattern. As an intermediary target, $1735 is about the 50% Fibonacci retracement, and this would also be reasonable. If we can break out again, anticipate resistance in the $1780's.