Yes indeed, Gold has put on a great show following an all out dovish Fed event. Prices witnessed best daily gain in a month.
However, bulls still need to be cautious as bearish invalidation would happen in two case –
- Prices break above $1284 on daily closing basis
- Daily RSI breaches the downtrend
As of now, prices trade around $1260.66, with daily RSI well below falling trendline
Bearish divergence will remain intact unless RSI breaks from the downtrend or prices break abve 1285.
If resistance at $1285 is violated, prices could test $1300-1310 levels.
On the other hand, negative closing tomorrow wuld keep doors open for a fall back to $1230-1220 levels,