Gold bulls still need to be cautious!

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

gold

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,

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