Gold price fell towards the channel support at $1,870 earlier today when the US CPI was announced. Price tested the key short-term support and bounced towards $1,893. Price still remains inside the bullish channel.
Although there are increased chances of a downward reversal in Gold, price action so far indicates that bulls remain in control of the trend, price is supported and the channel still holds. Today's increased volatility has helped us enormously. Why? Because we have now identified and confirmed the key support level of $1,868-70. As long as price is above this level bulls remain in control and Gold could see above $1,900 again. Resistance is at $1,903. Breaking below $1,870 will open the way for a move towards $1,850-20.
