Gold price tried to close above $1,750 this week but price came back towards $1,720-10 support. Although our short-term outlook for a move towards $1,770-80 partially played out, we remain cautious as the weekly chart shows warning signs. Although it was expected for Gold price to move above $1,750 after breaking above $1,720, Gold price in the area of $1,750 is oversold while at the same time the RSI is diverging. Traders should not ignore this.
Black line – resistance broken
In Ichimoku cloud terms Gold price remains above key short-term support indicators. The tenkan-sen has risen to $1,729 while the kijun-sen support is at $1,712. As long as price is above these two levels, short-term trend remains bullish and we continue to expect price to reach $1,770-80. Failure to hold these two levels will increase the chances for a pull back towards $1,650.