- Gold’s hourly chart is reporting a bullish indicator divergence.
- A bounce to $1,457-$1,460 could be in the offing.
Gold is currently trading at $1,455 per Oz, having hit a low of $1,451.50 an hour ago.
The recovery could be extended further, possibly to $1,457-$1,460, as the hourly chart is reporting a bullish divergence of the relative strength index and MACD histogram.
A bullish divergence occurs when the indicator creates higher lows, contradicting lower lows on price and is considered a sign of seller exhaustion.
Note that the overall outlook will remain bearish as long as the trendline connecting September and November highs is intact.
Also, the hourly chart bullish outlook would be invalidated if prices drop below $1,451.50.
Hourly chart
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Trend: Minor bounce likely
Technical levels
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