Gold price got rejected yesterday as we warned about the bearish behavior. Bulls were once again weak and could not break above the $1,520 resistance. Not only that, but today bulls were also unable to hold price above $1,490.
Green line - support trend line
The Daily candlestick following yesterday's rejection is very bad. Price has not only broken below $1,500, price has fallen below the upward sloping green trend line support and is now below the recent low. This is a bearish sign implying more weakness ahead, unless we see a weekly close above $1,505. Only if bulls manage to reclaim $1,500-$1,505 by the end of the week I will start turning bullish again. Until then we remain bearish. Next support is at $1,472 and resistance at $1,500-$1,505. I believe it is more probable to see more downside than a bullish reversal after today's decline.
