Technical analysis of Gold for August 6, 2018

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Gold price remains inside the downward sloping wedge pattern. The trend remains bearish. Gold price is making lower lows and lower highs. The RSI continues to provide bullish divergence warnings. The key short-term reversal level has now been lowered.

Technical analysis of Gold for August 6, 2018

Black lines - wedge pattern
Red line - RSI bullish divergence
Blue line- RSI resistance

As long as the price is below $1,225 and the RSI is below the blue trend line resistance, the trend will remain bearish. For the short-term trend to change to bullish we need to see both levels to be broken upwards. The next support in gold price is at $1,190-$1,180. The price behavior justifies a strong bounce at least towards $1,265-75 area.