FX.co ★ Gold reaches $1,620 target

Red lines -bearish channel

Gold price started the trading week under pressure with price falling very close to our $1,620 target. Today's low at $1,626 was followed by a sharp recovery back to last week's close. Gold price is bouncing off the lower channel boundary and with the RSI already providing a bullish divergence. Gold justifies a bounce higher towards $1,670 from current levels. Short-term trend remains bearish as price is still inside the downward sloping channel from $1,800. A bounce towards $1,670 would be a shorting opportunity. There are increased chances of seeing something like this the current week. Our bounce target area is between $1,660 and $1,680. We might first re-visit the $1,620 lows before bouncing higher.