Gold price continues trade above $1,850 as price continues making higher highs and higher lows. Short-term trend remains bullish and as we explained in previous posts, we could be at the start of a bigger bounce higher towards $1,900.
Green line - support trend line
Gold price has stopped so far the advance at the 38% Fibonacci retracement. Price is still above the green support trend line. As long as this is the case, bulls have hopes of price continuing higher towards the 50% Fibonacci retracement at $1,891. Support is at $1,846 and bulls do not want to see price break below that level. That would be a sign of weakness. The RSI has still not reached overbought levels, therefore we continue to believe that it is more probable for price to continue higher.
