Blue line- support trend line
Gold price is trading around $1,800 on the last trading day of February. Despite making new higher high relative to January, bears took over and price is making lower lows relative to the previous month. Long-term trend remains bullish as the blue upward sloping trend line is intact. Gold price has formed a lower high relative to its all time highs. Gold price has the potential to reach the blue trend line at $1,460. For the last three months Gold price has been moving higher steadily but February showed its weakness. Gold price remains vulnerable to more downside. Key support is found around $1,615. So far the decline has retraced more than 38% of the last leg up. At $1,750 we find the 61.8% retracement of the last leg up. A break below this level will put $1,615 in danger.
