Gold bulls tried to recapture the short-term resistance area of $1,415-25 but where not strong enough. Gold price remains close to the $1,400 resistance and I believe that next week it is more probable to break it and move towards $1,380.
Blue line – bearish divergence
Green line – trend line support
Red rectangle -support area
Blue rectangle – target if support breaks
Gold price should move towards the green trend line support and the blue rectangle if price breaks below $1,400. So far the medium-term trend remains bullish but in the short-term we see some warning signs by the RSI. The bearish divergence that we warned last week so far has brought weakness in price and a short-term reversal. This reversal is most probably not finished and the pull back could reach the green trend line support. Key short-term support at $1,400. Resistance at $1,415-25.