Red lines -bearish channel
Blue lines- Fibonacci retracement levels
Gold price is trading around $1,760. As expected by our analysis Gold price has pulled back towards our $1,750 target. We warned bulls on time that Gold price was vulnerable at $1,800 for a pull back. Gold price has started forming a bearish channel as price is making lower lows and lower highs. So far we have seen price retrace 38% of the entire rise from July lows. The 38% retracement is important short-term support. A break below this level will open the way for a move towards $1,744. Resistance is at $1,780. As long as price is below this level, Gold price is vulnerable to more downside.
