Short-term analysis on Gold

Gold price is back above $1,780 but still below $1,800. Although technically trend remains bearish, on June 29th we got a bullish divergence by the RSI as price did not make a new low as the value of Gold was making new lows.

Green lines- bullish divergence

Blue line- Resistance

Gold price is in a bearish trend as long as price remains below $1,800. This bounce towards $1,800 could be seen as a short-term selling opportunity where the risk is very low ($1,800) and the downside potential for a new lower low ($1,750-40) is much bigger. The bullish divergence is just a warning and not a reversal signal. For a reversal signal we also need signs of strength. In this case a sign of strength would be for Gold price to move above $1,800 and recapture $1,815. Until then any upward move towards $1,800 is considered a selling opportunity.