Bullish exhaustion on gold

Gold had a good bullish run during this week as the risk appetite came back into the markets and the Dollar retraced to the downside. However, during today´s session the price of gold loses its bullish momentum and retraces to the downside once it came very close to the high and resistance area around the 1366. The direction reversal on the price of gold comes after the FED’s minutes where release and its was known that the central bank is trying to slow down the US economy, which causes the stock market to fall, the Dollar to rise, and gold to pull back. The price of gold managed to break above the 1350 level, but once it got to the 1366 zone it comes back down, leaving today’s daily candle with a relatively long upper shadow, which is an indication that the sellers are trying to take control of the market. The 1350 level may act as support, but a breakdown of that level could take the price of gold to the 55 day EMA around the 1326 level in the next few sessions.