FX.co ★ Gold declines below $1,600 and reaches our target

As we explained in our morning analysis Gold price was showing bearish reversal signs. Gold price was expected from earlier today to push below $1,600 and reach $1,570-50 area. This target area has been achieved and Gold is bouncing. Short-term trend remains bearish and there are still chances of a move towards the lower channel boundary.

Green lines - bearish divergence

The RSI has provided us with a clear warning signal and we followed the the sign expecting a move towards $1,570-50. Gold price made a low today at $1,560. Gold could still move lower towards the lower channel boundary and I feel it is very risky still to look for the bullish side of a trade.