In our last Gold analysis we noted that the Ichimoku cloud indicator provided a bullish signal at $1,758 and as long as price remained above the support of $1,753-48. trend in the 4 hour chart will remain bullish. Price has pulled back towards $1,752 where we find the 4 hour Kumo (cloud). Price so far respects this support.
Gold price continues to trade above the cloud. This is key for the short-term bullish trend. Resistance is found at $1,765 and $1,763 by the tenkan-sen (Red line indicator) and the kijun-sen (yellow line indicator) respectively. Breaking above $1,763-65 will open the way for a move towards $1,780-$1,800. Failure to stay above $1,745 will be a sign of weakness and a new low in Gold towards $1,700 should be expected.
