Gold bulls recapture $1,700 but face important resistance ahead. Price has resistance now at $1,725 where we find the upper boundary of the downward sloping channel. Gold bulls have made a comeback after breaking below $1,700 and it is important for them to hold price above it.

Green line -target

Gold price is bouncing off $1,693. Recapturing $1,700 was an important bullish sign that bears did not want to see. Price should now continue higher and break the resistance at $1,725. If price continues to make higher highs and higher lows, I expect Gold price to reach $1,780 next. The weekly bearish divergence remains and we should not ignore it.