Gold is in overbought zone, trade cautiously: Bhavik Patel of Tradebulls

Gold has dropped below $1900. Now, although dollar weakness contributed fractional tailwinds, it was not enough for gold to close positive on Tuesday. Despite a minor pullback, gold bulls are near technical advantage. A two-month-old price uptrend is in place on the daily bar chart and next resistance for gold comes around $1959, a level last seen in December 2020. Meanwhile, immediate support for gold in COMEX is at $1885.

Gold’s next move is expected on Friday when the US Labor Department releases its non-farm payrolls report for May. A disappointing non-farm payroll could push gold prices further upside