Gold price is sliding lower but in a slow move. Trend remains bullish but as we explained in previous posts, it was time for a healthy pull back towards $1,270. I continue to expect Gold price to move towards the lower channel boundary but overall I do not think the up trend is over.
Green rectangles – support areas
Black line – expected path
Purple lines – bullish channel
Gold price has made an important high at $1,298 very close to our $1,300 target. Price has pulled back as expected after the warning signs we got from the 4-hour RSI bearish divergence. Gold is expected to slide even lower towards the $1,270 area before resuming its up trend. The upward move that started in August has still room to move higher maybe even towards $1,350. As long as price is above $1,250-60 short-term trend will remain bullish targeting a move above $1,300 towards $1,320.
The material has been provided by InstaForex Company – www.instaforex.com