Technical Analysis: Gold price pulls back, RSI diverging
Gold price (XAU/USD) has pulled back from all-time highs at around $2,450 on Tuesday after forming a Shooting Star Japanese candlestick pattern on Monday. This candlestick pattern occurs when the price reaches a new high and then retreats to close near its low. It is a bearish sign after an uptrend, especially when followed by a red bearish candlestick on the next day, as is currently the case. If Tuesday ends as a red down day it could be a sign of a deeper correction to come.
However, if Tuesday ends as a green bullish day, it will reduce the significance of the Shooting Star and could be a sign that the dominant bullish trend is more likely to continue.
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