Gold price got rejected once again despite the new higher high above $1,700. The bearish divergence in the RSI combined with the rejection at the upper channel boundary makes me expect price should fall below $1,600 again.
Red lines - bullish channel
Green line - bearish divergence
Gold price got rejected at the upper channel boundary for the second time. Price has touched this line three times so far and I believe it is an important resistance. Combined with the fact that the RSI is making lower highs, I expect Gold price to move towards the lower channel boundary. As we explained in our latest Ichimoku cloud analysis on Gold, short-term support is at $1,630-25 and a break below it will open the way for a move towards $1,570-$1,550. Then we will re-evaluate the situation. Resistance is at $1,671 and as long as price is below that level I remain neutral or bearish Gold.
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