Gold price is bouncing after making a low yesterday at $1,459. Price has reached our first target area and is now bouncing towards the key resistance that was once support. Recapturing $1,500 is key for the short-term trend.
Red lines - bullish channel
Blue rectangle - resistance
Gold price is trying to move above the resistance area around $1,500 which was once support. Gold price is bouncing after the 100% extension target was hit. This could very well be a selling opportunity bounce for Gold. Trend remains bearish as long as price is below $1,535. If price breaks above $1,535 would should expect $1,600 to be reached. However I believe it is more probable to see another lower high and then a downward reversal. Support is now at $1,474 and if we see this level broken then I would expect price to move towards the 161.8% Fibonacci extension lower.
