Red lines- bearish channel

Gold price is trading around $1,665. In our previous analysis we noted that there is still some more upside potential in Gold. In our post we mentioned that Gold has still room to the upside and could reach the upper channel boundary between $1,660-70. Gold price made a high at $1,673 and is turning lower. A rejection at current levels is highly probable and we could see Gold starting a new downward move to new lows below $1,600. This is not the time to be buying Gold as it was not the time short Gold when it was trading close to $1,615-20. If Gold breaks out of the bearish short-term channel, then we could expect Gold to continue higher towards the next major resistance at $1,700.