Gold price has made a pull back last week towards $1,217 but respected the recent low at $1,211 and is now challenging once again the recent highs and important short-term resistance at $1,230.
Red rectangle - important short-term resistance
Blue rectangle - major resistance
Green line - trend line support
As we repeated in our last analysis, bulls have hopes for a break out above resistance as long as price does not break below the green trend line support. Gold's price behavior so far is supportive as price held above the 61.8% Fibonacci retracement level and despite last Friday's pull back, we see price once again challenging the important resistance area marked as red in the chart above. Bears want another rejection here and a move below $1,210. Bulls want to see a daily close above $1,230 and this will open the way for a bigger bounce towards $1,250-60.
