In our previous analysis when Gold price was trading around $1,650 I said that we expect a pull back in Gold price. So far the pull back has been very shallow and so far important support trend lines remain intact.

Red line - resistance

Gold price continues to make higher highs and higher lows. Price is touching once again the green upward sloping support trend line. As long as this trend line remains intact we remain optimistic and consider each pull back as a buying opportunity. But bulls need to be very cautious as the oscillators have reached overbought levels. We could soon see new short-term higher highs in Gold price and the oscillators to produce a lower high. This is the most probable scenario now. To see some bearish divergence signs. Overall I believe Gold price is very vulnerable to a pull back towards $1,600-$1,570 again. I believe the most probable scenario as long as we hold above $1,638 is to see $1,670-80 before turning lower. If $1,638 fails to hold then I would expect price to move lower right away.