Gold price is trading again below $1,555. Price broke to new 2019 highs and reached $1,557, but bulls were unable to hold prices near the highs. Gold is now trading near $1,537 and unless we see another upward move above $1,550 then there are a lot of chances of seeing $1,500 area again.
Green rectangle - support
Gold price made a move above the resistance area but it now seems this was a fake break out. Gold price has support at $1,515 if this support fails to hold, we should expect Gold price to test $1,500-$1,475 area. Gold remains in a bullish trend but as we noted in previous posts, bulls need to be very cautious. Why? Because there are bearish divergence RSI signs on the Daily chart.
Black line -bearish divergence
Green line - major support trend line
Gold price could have already topped. If this is the case Gold should at least pull back towards the lower channel boundary near $1,480. Gold has reached very close to our $1,570 target and we are no more looking for any upside as the risk is not worth the reward.
