Red lines- bearish channel
As expected by our previous analysis, Gold price revisited the $1,626 level and made a new lower low at $1,620 which was our initial target level. Price is now bouncing higher towards $1,640. Gold price remains inside the short-term channel but there are increased chances of a bounce towards $1,660-70. The RSI did not make new lows as price did providing a bullish divergence. This is not a sign of reversal, but a sign that tells us that there are increased chances of a move higher towards the upper channel boundary. Trend remains controlled by bears.