FX.co ★ Gold reverses below $1,500 as our bearish warning is confirmed

In our last analysis we noted the bearish reversal signal we got by the hammer candlestick pattern in the Daily chart. The rejection at $1,520 confirmed the importance of the resistance above $1,520 and confirmed the strength of bears.

Black line -trend line resistance

Gold price got rejected at the orange resistance area. The RSI got rejected at the resistance trend line again. The daily bearish hammer pattern that we noted has a bearish follow through confirming our worries. Price is back below $1,500 and if support at $1,490 fails to hold, we could see Gold price move towards $1,450-60 in early November. Resistance remains key at $1,520-25. We remain bearish as long as price is below that level.