Gold price is back above $1,700 after falling as low as $1,677. Our target was $1,650 and remains so as long as price is below $1,720-40. Price is bouncing today towards the important trend line resistance at $1,728.
Red line - resistance trend line
Gold price is bouncing off $1,677 from the previous lows made back in the beginning of March. Will this double bottom provide strength to bulls for a bigger bounce? Bulls need to break above $1,720-40 area in order to hope for a bigger bounce towards the upper channel boundary near $1,780. Another rejection at the red trend line resistance will be a bearish sign and will increase chances of a new low. After today's bounce if price makes new short-term lows below $1,677, then the chances of a move towards $1,650-30 will increase dramatically.
