06.08.201921:15 Forex Analysis & Reviews: Gold gives short-term warning signs for bulls

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Gold price is at 2019 highs just $30 from $1,500. The risk reward for a bullish position in the short-term or to open new position now is not good. Traders should be patient for long positions as there are some warning signs for an imminent pull back.

Yellow rectangles - higher highs with divergence

Black line -support

Red line - bearish divergence

The RSI is challenging trend line resistance. Gold price despite making a new higher high is vulnerable to a correction. The bearish divergence is a warning for bulls. This is not a reversal sign. Just a warning. Short-term support is at $1,450 and next at $1,425. If support fails to hold we should expect Gold price to move towards the red rectangle. Gold's upside is limited. Gold bulls should be patient and wait for a deep pull back than chase long positions now.

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