FX.co ★ Technical analysis on Gold for May 9th, 2023.

Blue lines- bullish channel

Black line- bearish RSI divergence

Gold price is bouncing higher after Friday's sell off towards $1,999. Gold price is trading now at $2,030 and trend remains bullish as price continues making higher highs and higher lows. Current market conditions suggest that a pull back towards $1,940 area is justified, but so far we have no reversal confirmation. The bearish RSI divergence continues to suggest a weakening trend. Recent low at $1,999 if broken, we will have increased chances of a pull back towards the lower channel boundary. Gold's upside potential is towards $2,090-$2,100. Downside potential is bigger. Traders need to be cautious.