Gold price is trading around $1,580 so far respecting the lower boundary of the bullish channel it has been inside since the $1,535 low. Bulls need to hold above $1,563 in order to continue to control the short-term trend.
Red lines - Fibonacci extension targets
Gold price has so far reached our first target of $1,578 and has made a double top at $1,586. Breaking above this double top will open the way for our second target of $1,600. Support is at $1,563 and as long as price is above that level, bulls are in control.
Gold price is approaching the 2020 highs and on a weekly basis we observe a constructive bullish move. The bearish divergence is still there and we could continue seeing it even if we see a new higher high. The RSI is back at overbought levels but the most important price level is this week's low. As long as price is above this week's low, bulls have nothing to fear.
