FX.co ★ Warning signals for Gold bulls

Gold price despite breaking above $1,780 has not provided us with signs of strength. On the contrary price got rejected once it touched the lower channel boundary and is now back below the broken short-term resistance trend line. Bulls need to defend $1,760, because if it fails to hold, we should expect a pull back lower towards $1,740 at least.

Purple line - resistance

Gold price is back below the purple resistance trend line. The break out above it lead to a rejection at the channel boundary. This was most probably a fake break out. However confirmation of this will come if and when price breaks below $1,760. Bulls need to defend this level. Gold price made a high close to $1,790. This is major resistance. Breaking above it will be a sign of strength and Gold will most probably continue higher towards $1,800-$1,810.