Gold price has managed to climb back above $1.720 maintaining the bullish momentum despite the pull back towards $1,660. Trend remains bullish but the warning signs are still there. Gold price can make a new higher high but the real question is if it can sustain trading above $1,700.
Gold price has provided us with a glaring bearish divergence in the Daily chart. This kind of divergence seldom does not get confirmed. In other words it is very likely over the coming weeks to see a strong pull back in Gold price. As long as the RSI is below the red downward sloping trend line I prefer to be net seller of Gold from $1,720 and above, looking for a pull back at least towards $1,600. This chart formation justifies a pull back below $1,660.
