The area around 1,680 USD seems to be the critical gold for gold. As long as the price remains above this support, the medium-term outlook still seems bullish. However, it looks like bulls won't have enough power to keep gold above 1,680 USD.
If this level is broken to the downside, larger stop-losses might be hit, which will most likely push the price sharply lower. The next target could be at 1,640 USD, which might be quickly reached, and the next area to watch will be at the psychological level of 1,600 USD.
Alternatively, the resistance seems to be in the 1,710 USD zone and if the price squeezes about this level, we could see further rally toward 1,750 USD.
From the long-term perspective, gold should perform very well in this inflationary environment as central banks are printing massive amounts of money into the financial markets. However, there might be some steep short-term corrections during the way higher.
