Gold price bounced towards short-term resistance at $1,290 but still did not manage to break above it. Price remains below important resistance trend line and a break below $1,276 short-term support is very possible over the coming hours.
Blue line -major resistance
Blue rectangle - short-term support
Gold's inability to break above the blue downward sloping trend line is a bearish sign. There are high chances of breaking below the blue short-term support and starting a new sell off that will eventually bring price towards $1,250-60 at least. Gold price is back testing the broken support zone and so far it remains below important short-term ($1,288) and medium-term ($1,300) resistance. Failure to hold above $1,276 will open the way for a test of the double bottom at $1,266.
