Gold price is bouncing higher. Price remains trapped inside the trading range and below important resistance levels. The price action over the next few sessions will be critical for the medium-term trend.
Red rectangle - support
Black line - downward sloping trend line resistance
Yellow rectangles - resistance levels
Gold price has resistance at $1,415-20 and at $1,430-40. Support is found at $1,385. Current price action and structure suggest to me that the chances of a break down are equal to that of a break above resistance. However a break above the short-term resistance at $1,415 will make me favor the bullish side and I will have increased chances of a break out above the trading range we are in since end of June. As we said before, a break above $1,440 will open the way for a move towards $1,500-$1,525. A failure to hold above $1,385 support will open the way for a move towards $1,300-$1,350.
