Gold price remains inside the bullish medium-term channel. Trend remains bullish also in the short-term, however traders should keep in mind that another pull back close to the lower channel boundary is justified and very possible.
Black lines - Fibonacci retracement
Gold price is showing reversal signs around the 61.8% Fibonacci retracement level of the latest downward move. A creation of a lower high around $2,000 would not be a good sign for bulls. Minimum expectations for a pull back would be at $1,900-$1,920 area. So I would not be very optimistic at current levels. Bulls need to be cautious. Short-term support is found at $1,980. Breaking below it will open the way for a move towards $1,920. Aggressive traders could try a short position now at $1,994 with stops at $2,015 and target at least $1,920-$1,900.
