Technical analysis on Gold for June 1, 2021.

Gold price made a new higher high today above $1,912. Price reached $1,916. Trend remains bullish as price continues making higher highs and higher lows. However my belief that a reversal is coming has been strengthened by the third bearish RSI divergence in the 4 hour chart.

Blue lines- bullish channel

Black line- bearish divergence

Despite the third consecutive higher high in price, the RSI did not follow and made a new lower high. Price is still above $1,900 and there is still no confirmation of a trend reversal. The chances of a reversal have increased and my view to be neutral if not bearish at current levels remains. A pull back towards $1,880-$1,860 is fully justified and will not cause any trouble to the medium-term bullish trend as price would remain inside the bullish channel.