In our previous analysis on Gold we warned again that price despite being in a bullish trend and still inside the bullish channel, the upside momentum was weakening and we preferred to be neutral if not bearish. Gold price is now trading at $1,892.
Black line - bearish divergence
Red line- support
Gold price is testing the short-term support trend line. Price touched the upper channel boundary and reversed once again. Technically trend remains bullish as price continues making higher highs and higher lows. The RSI continues making lower highs providing bearish divergence warnings. If price breaks below the red support trend line at $1,890 we will get another bearish signal. This will be a sign of weakness implying that Gold price could push lower towards the lower channel boundary towards $1,850. Again as we said yesterday, at current levels we believe the upside potential is limited for the short-term. Bulls need to be very cautious.