In previous posts we warned that Gold price was approaching key target areas and a pull back was imminent. Gold price made a high at $2,069 and so far price has reached our first pull back target of $1,950 and our second target at $1,900-$1,910.
Gold price is making lower lows and lower highs. In the 4 hour chart as one can see above, price has formed a bearish channel. Channel resistance is at $1,930 and as long as price is below this level, bears are in control of the short-term trend. Next downside target is at $1,880-90 near the lower channel boundary. Although the RSI is very close to oversold levels, there is no sign of weakening of this downward move. There is no bullish divergence. There is no sign of a reversal. More downside should be expected.
