Gold price got rejected once again at $1,900 and is turning lower. Price is once again challenging the bullish channel boundaries. Price is above key support and recent lows of $1,870. Breaking below the $1,870 level will open the way for a deeper decline towards $1,850-20.
Red rectangle- resistance
Gold price has formed an important lower high around $1,900-$1,905. This is key resistance that was confirmed earlier today. As long as price is below this resistance area we expect Gold to break down and out below the channel. The bearish RSI divergence warned bulls on time and before the top was made. There are increased chances of breaking $1,870 next week and moving lower towards our second target of $1,825 which is the 38% Fibonacci retracement of the entire rise from $1,677 to $1,916.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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