Gold price is trading around $1,890, but price earlier was challenging $1,880. Trend remains bullish, however as we mentioned in our previous posts, Gold price is showing bullish trend is weakening and a pull back towards $1,850 is not out of the question. On the contrary it is highly probable.
Red line- short-term support trend line
Black lines- bearish divergence
Gold price has broken below the short-term support trend line. Price is still inside the bullish channel, but with the bearish divergence of the RSI, we feel it is more likely to see price move lower over next week. Our pull back target is at the lower channel boundary at $1,850. Resistance is now at $1,903. As long as price is below $1,903 bears have control of the short-term trend with a tendency to move towards $1,860-50.
