Red lines- medium-term bearish channel
Black lines- short-term bearish channel
Gold price is trading around $1,850. Last Friday Gold price finally broke out of the short-term black downward sloping channel it was in. Last Friday Gold chart provided a short-term reversal signal. In our previous posts we mentioned many times that it was about time to see a bounce in Gold price. Gold was oversold in the near term and a strong move higher was justified. The geopolitical tensions in Israel have influenced market participants by providing a gap up open earlier today for the start of the week. A gap close is very possible around the $1,834 level before continuing higher towards the upper red channel boundary resistance at $1,900. Support is found at $1,820-10 area. Failure to hold above this level will lead Gold price towards $1,790 and lower.