Gold price has moved closer to our $1,440-50 target area of 161.8% Fibonacci extension. Price reached $1,439 but we now observe some warning signs in the RSI. This is not the time to be opening long positions. This is the time to take profits, raise stops or remain neutral.
In the 4 hour chart of Gold, we observe that the RSI is not making higher highs as price does. This is not a reversal signal but a warning signal for bulls. Risk reward does not favor opening new long positions. The rise in price is almost vertical. This kind of price moves is usually followed by pull backs towards previous consolidation levels. This means that we could see Gold price pull back towards $1,400 before continuing higher. That is why I prefer to be neutral or take profits or raise stops if long.
