Gold price is trading below $1,780 but still above $1,761 recent low. There is no clear direction of the trend in Gold as price has stopped the decline at key Fibonacci retracement level, while the upside signals are there but not very strong. Bulls need to see more signs of strength in order to continue higher.
Red lines- bullish divergence
Gold price is bouncing higher after the low around $1,760. The RSI has provided us with important warnings for bears, as price was making new lows, the RSI did not. Thus forming a bullish divergence, This bullish divergence combined with the fact that Gold stopped its decline around the 61.8% Fibonacci retracement, has made us turn slightly bullish expecting a trend reversal. So far we have not had a confirmation on the trend change. Resistance is at $1,792. Breaking it is important as price will be pushed even higher towards the next key short-term resistance of $1,815.
