Gold price has bounced off the Daily cloud support and has reached the $1,715-20 area as expected. By the Ichimoku cloud indicators this area is important resistance and could be decisive for the move in Gold price over the next few weeks.
Gold price is above the Cloud. This is a bullish sign, Gold price has crossed the tenkan-sen (red line indicator) and is challenging the kijun-sen (yellow line indicator). The Chikou span is above the candlestick formation and this is a bullish sign. The chart so far shows signs in favor of bulls. However bulls need to show more signs of strength. If the tenkan-sen (red line indicator) crosses above the kijun-sen (yellow line indicator) then we will have a strong buy signal. This would be good news for bulls. Recapturing $1,720 area and holding above it would do it. A rejection would be a bearish sign. Support remains key by the cloud at $1,670. Breaking below it could push price towards $1,600.
