Gold price is bouncing off the $1,385 support area. Our view to be bullish near support and bearish near resistance remains the same and is working nicely thus far. However we should also be very cautious in case we see price break out of the trading range.
Yellow rectangle - resistance
Gold price has respected support at $1,385-90 and is now trading again above the $1,400 level. Gold price has resistance at $1,440 and a break above this level will open the way for a move towards $1,500-$1,525. A rejection and reversal near $1,440 will increase the chances of a move back below $1,400 with increased chances of breaking below $1,385. For now price remains supported. If support fails to hold we should expect Gold to reach $1,330-$1,300.
