Gold climbed back to retest the highly psychological $900/oz level as anticipated. The rally is falling short with the precious metal experiencing consolidation.

Though gold managed to get past our 1st tier downtrend line, our 2nd tier isn't far away. In our eyes, gold broke the uptrend's back on April 2nd.

Therefore, the precious metal would need to accomplish some incredible fundamental feats to reinstate the uptrend.

Hence, we view the precious metal's recent rally as a healthy retest of a critical, defeated psychological support. We wouldn't be surprised to see the negative correlation with U. S. equities to come into full swing with the S&P futures performing well.

Fundamentally we see resistances of $897.82/oz, $900.76/oz, $904.26/oz, $908.72/oz, and $913.49/oz. To the downside, we find supports of $894.46, $890.64/oz, $887.21/oz, $884.10/oz, and $880.71. Gold is currently trading at $894.25/oz.

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