Gold price was expected to reach $1,500-$1,525 area once it broke above $1,430-45 area. The bearish divergence is now gone but this does not cancel the chances for a pull back. Trend remains bullish.
Black lines - bullish channel
Red line- RSI resistance broken
Yellow rectangle -pull back target and major support
Red rectangle - short-term target
Gold price could reach $1,530-35 before pulling back towards $1,450-$1,430. Trend is bullish as price is inside the black bullish channel making higher highs and higher lows. The RSI broke to new highs canceling the bearish divergence. This is an important medium-term bullish signal implying that Gold has much more upside but for the medium-term. So far there is no reversal signal as we pointed out in our last analysis and trend remains bullish.
