Gold price made a deep correction during 2nd week of August and price tumbled from $2,075 to $1,862. Price stayed inside the bullish channel and nearly touched the lower channel boundary. There is no change in trend.
Gold price could make another pull back towards $1,880 area and I believe this will be the big test for the medium-term trend. If recent low at $1,862 holds on a weekly basis then we could expect another move higher. An ideal setup for bulls would be to see price pull back again towards $1,880 and then break above recent high at $1,965. This will be a confirmed bullish setup, that is why I would be a buyer as close to $1,860 as possible and use it as a stop.
