Gold price is trading inside a short-term bullish channel after the major low at $1,677 and inside a longer-term bearish channel since August of 2020. Price is approaching the upper bearish channel boundary as it continues to respect the bullish channel boundaries.
Green lines - medium-term bearish channel
Gold price is showing reversal signs. Price justifies a pull back towards the lower blue channel boundary at $1,790-$1,800. Price has potential of reaching $1,870 and the upper green channel boundary resistance. Gold price is close to the major channel resistance area and it is not advisable to open new long positions at current levels. It is preferred to wait for a pull back towards support levels.
