Gold price is challenging major short-term support at $1,500-$1,510. As we said in previous posts it is important for the short-term bullish trend to see bulls hold price above $1,500. We also explained the dangers and the vulnerability that was shown by the charts and we established that there were increased risks to the downside.

Green line - important medium-term support

Blue rectangle - support

Gold price is breaking short-term horizontal support and the upward sloping trend line support. Starting the week on a weakness is a bearish sign and if we see price break below $1,480-90 area we should expect Gold price to continue lower towards $1,450-60 area at least. Gold price showed bearish divergence signs and we are now close to to confirming a bearish reversal in short-term trend.