Blue lines- bullish channel
Black line- bearish divergence
Gold price is again above $1,860. Gold remains supported inside the short-term bullish channel and is very close to providing a new higher high. Technically trend remains bullish despite the short-term weakness. The weakness we witnessed recently was not strong enough to provide a reversal signal. Gold price is very close to the upper channel boundary resistance. The RSI is testing the black downward sloping trend line again. Will gold see a reversal from next week? We continue to expect a pull back towards the lower channel boundary. However traders need to be patient. The bearish divergence is only a warning and not a reversal signal. Recent low at $1,824 is now important support and trend reversal level.
