FX.co ★ Gold price remains in a bullish trend with $1.568 the next target

Gold bulls have managed to recapture the key resistance level of $1,510 and as expected price continues to new higher highs. Price is inside bullish short-term channel and we should expect to see $1,550-70 area soon. Bulls however need not be very overconfident.

Green line - major long-term support

Blue line - medium-term important support

With a weekly RSI at 84.10 and Gold making higher highs and higher lows, we remain long-term optimistic but cautious in the short-term Gold price is targeting $1,568 where the recent rise from $1,266 will be equal to the rise from $1.160 to $1,346. There is no reversal sign yet but the overbought RSI and some short-term bearish divergence signs make me want to be prepared for a deeper than usual pull back. First important short-term support is found at $1,500-$1,510. Breaking below this level will be the first weakness sign. As long as price holds above it then we should expect to see $1,568 or even higher.