Gold price remains in a weekly down trend after getting rejected at $1,350 area. Price has potential to go towards $1,210 as explained in previous weekly chart analysis. Gold price current action confirms this view if we break below $1,266.
Red line - long-term support trend line
Gold price peaked at the start of the year near the blue trend line resistance and reversed lower. This rejection has increased the chances of a pull back towards the red trend line support, continuing the triangle pattern formation. Short-term support at $1,266 is an important level to watch out for. Breaking below $1,266 increases even more the chances of price reaching the red trend line. The RSI is far from oversold with a negative slope. Trend remains bearish. Major resistance is found at $1,300. Bulls need to recapture this level in order to regain control.
