FX.co ★ Short-term technical analysis on Gold for May 26, 2021

Gold price made a new higher high today at $1,912. Trend remains bullish. Price is still inside the bullish channel and is trading very close to the upper channel boundary. The chances of a reversal from current price levels area high. At current price levels I prefer to be neutral if not bearish Gold.

Blue lines -bullish channel

Gold price is making new highs but the RSI continues making lower highs. This bearish divergence is something traders should not ignore. A reversal towards the lower channel boundary is highly likely and that is why I prefer to be neutral if not bearish Gold. Short-term support is found at $1,887 and failure to hold this level will open the way for the move towards the lower channel boundary. Upside potential is limited as the bullish momentum is weakening.