FX.co ★ Gold price breaks out of short-term bullish channel.

Gold price is trading around $1,781 after reaching as high as $1,794. Price has broken out of the near term bullish channel and is expected to continue lower at least towards $1,755-40 area. Gold price made a counter trend bounce after making a low around $1,680 last week.

Green rectangle - short-term pull back target

Gold price has ended the sequence of higher highs and higher lows. Price is turning over and the lower high at $1,794 relative to $1,831 could prove to be in a few days as an important top. If price moves below $1,745 the chances of making new lows below $1,680 will increase. If price makes a higher low towards $1,745-55 and reverses to the upside, traders should be cautious as a new upward move with a target above $1,800 will be starting. At $1,780 I prefer to be bearish as long as price is below $1,794.