Gold price continues to make higher highs and higher lows. Price is in a bullish short-term trend and we can soon see a new higher high towards $1,530-40 area. However the RSI is providing us with some warning reversal signs that should be taken under serious consideration.
Gold price is challenging recent highs. However the RSI does not confirm this bullish strength. So far we have one divergent new higher high and a second one most probably today will occur. This would be an important bearish warning sign. Bulls should be very cautious and are now warned by this divergence. Short-term support is at $1,517. Breaking below this support level will open the way for a pull back towards $1,490-$1,500 at least as we have been expecting from the end of last week. I believe this is not the time to chase the price at current levels. Bulls should be very patient and wait for a pull back, while bears could see the new higher high as an opportunity to go against the trend specially if we see another bearish divergence.
