Gold price is trading at $1,722. Gold price the last couple of sessions has formed a low at $1,676 and as expected has bounced towards the first important resistance at $1,725-30. Price seems unable to move above this resistance level. As we explained in our last analysis, we consider this as a counter trend bounce and expect Gold price to make new lows towards $1,650.
Blue line - support
Gold price is expected to make another touch of the blue trend line. As long as price is below the red resistance trend line we remain bearish. This trend line is now at $1,770. The RSI is turning higher from oversold levels, however we have not observed yet any bullish divergence. This makes me expect lower lows and the RSI to make higher lows. Only if this is the case then we will have proof of a weakening down trend.
