Gold Price Analysis: A pullback in a bull trend

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Gold Price Analysis: A pullback in a bull trend
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Gold (XAG/USD) price is trading in the $2,174.000s after edging higher on the back of safe-haven flows at the start of the week.

Gold price is vulnerable to a temporary pullback as indicators flash sell. A Shooting Star Japanese candlestick pattern at the all-time-highs adds bearishness. A five wave Elliott Wave impulse move may have completed, further suggesting a deeper pullback on the horizon. Gold price is trading in the $2,174.000s after edging higher on the back of safe-haven flows at the start of the week.

The MACD has crossed below its signal line which is a signal to short sell the pair, and is lower than it was at the March 8 highs when it peaked. Since then it has declined, diverging with price, which carried on rising to a peak on March 21. The RSI has just exited overbought which is a classic sell signal and is showing divergence with March 9 when it peaked in the overbought zone.

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