As we said in previous posts this is not the time be buying Gold. Gold price has most probably finished the entire leg higher from $1,196 and it is preparing for a pull back. Gold price however remains technically in a short-term bullish trend as long as price is above $1,233.
Blue line- short-term trend line support
Gold line - Bearish RSI divergence
Green line - Major trend line support
Gold price made a new higher high as expected and reached very close to our $1,263 target. Price made a high at $1,258 and pulled back sharply towards $1,241 while now it is trading around $1,246. The blue trend line support is at $1,234-35 and if this trend line is broken, we should expect a move lower at least towards $1,220-25 and the green trend line support. Short-term support is found at $1,241 and if broken it will increase the chances of us seeing a deeper pull back. The RSI is providing bulls with some warning signs and implies that bulls need to be very cautious.
