Red lines- bearish channel
Blue lines- bullish RSI divergence
Black lines- expected path
Gold price has so far made one leg higher from $1,680 to $1,740 and is now pulling back. I expect to see Gold price forming a higher low and then starting a second leg higher towards the upper channel boundary. We must not forget that Gold price remains inside the medium-term bearish channel. Gold price has the potential to reach the upper channel boundary around $1,750-60 but first I can see it forming a higher low around $1,700-$1,720. At current levels traders better be patient as we are in the middle between the two channel extremes. Short-term momentum seems to favor bulls after the major reversal candle last week that touched $1,680 but closed much higher.
