Gold price has pulled back towards the key short-term support at $1,510. Price is challenging short-term support levels. It is important to see where the weekly close of Gold will be today and we might get some clues for next week.
Magenta line - support trend line
Green line - major support trend line
Gold price shows weakness signs. We talked in previous posts about the bearish divergence signs and the possibility of a major reversal, but for now we have not seen it yet. So far we only have warning signs. Price is now testing short-term support at $1,510 where we find the upward sloping magenta trend line and the horizontal blue rectangle. Breaking below this support area will be a bearish sign. This could lead to a deeper decline towards $1,450. So traders need to be very cautious. If $1,500-$1,510 fails to hold, bears will have the upper hand as long as price is below it.
