Gold price got rejected after the bounce at the $1,288 area. Gold price bounced towards resistance of $1,280-90 from $1,266 as a back test as expected. Medium-term trend remains bearish.
Blue lines -bullish divergence
Green rectangle - resistance (previous support)
Gold price is making higher highs and higher lows in the short-term after bottoming near $1,266. Gold price so far rejected at the resistance area of $1,280-90. Medium-term trend remains bearish as long as price is below the red downward sloping trend line resistance now at $1,300. The RSI is making higher highs and higher lows holding above the blue upward sloping trend line. As long as this trend line holds I expect Gold bulls to make another try higher towards the major red trend line resistance. Resistance at $1,288 if broken I would expect Gold price to move closer or even test $1,300. $1,274 is short-term support. Failure to stay above it will open the way towards our $1,250-60 target area or lower.
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