Gold price is trading above the major short-term resistance of $1,758. As we explained in our last analysis, bulls needed to break above $1,748 in order to increase chances for a move above $1,758. Breaking $1,758 would confirm the major low at $1,677 and the bullish signal for a move towards $1,800. Gold bulls need to defend this area now in order to continue higher.
Blue line- major horizontal resistance (broken)
Green lines- medium-term bearish channel
Red horizontal lines -Fibonacci expansion targets
Gold price is breaking to new short-term highs. Gold is pushing above major resistance levels and the road to $1,800 is open. I expect Gold price to challenge the bearish channel boundary at $1,788-$1,800. Support is at $1,740 and bulls do not want to see price turn below this level. This will imply that this upward break out was a trap and a false signal. Next Gold price targets are at $1,773 and at $1,804.
