FX.co ★ Technical analysis on Gold for May 5th, 2023.

Blue lines-bullish channel

Red lines- bearish potential

Black lines- bearish RSI divergence

Green line- important horizontal support

Gold is under pressure. Gold is trading close to $2,010. In our previous analysis we noted the increased chances of an important top in the making and the start of a pull back that could bring price towards $1,950-$1,920 area. Gold price remains inside the medium-term bullish channel, but this does not mean that in the near term we can not see a pull back. The strengthening of the Dollar after today's NFP numbers has hit Gold price. The new higher high made yesterday at $2,080 was followed by another bearish RSI divergence. We warned on time that the up trend was weakening and the RSI suggested that there was limited upside potential. Next key short-term support is at $1,977 and a break below it will open the way for a deeper correction towards the lower channel boundary.