Gold price has pulled back towards $1,758 from $1,788 highs. In our last analysis bulls were warned that price was at overbought levels and the RSI was giving us warning signs of a coming pull back.
Red lines -bullish channel
Gold price remains inside the upward sloping channel. Trend remains bullish. Price has found support at the lower channel boundary and so far seems to respect it. This is important for the short-term trend. As long as price is above $1,758 we expect price to continue higher towards $1,800. If support fails to hold we should see selling pressures increase. This could lead to a pull back towards $1,740-20 area.
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