Gold price is trading around $1,850. In our previous analysis we noted how important pivot level is found around $1,850. Price has broken the short-term support trend line and looks vulnerable to a move lower.
Red line – support
Gold price is trading below $1,850. Gold bulls need to recapture this level and if possible to move price above the red trend line resistance again. Otherwise there are increased chances of a move lower towards $1,800.
Blue lines – bearish flag
Red line – RSI support
Gold price has most probably formed a bearish flag pattern. If price moves below $1,830 there will be a bearish break down. This could give us a target near $1,750-30. So bulls need to be very cautious if price remains weak and pushes below short-term lows.