Gold price broke below the Kumo (cloud) support yesterday. Bulls tried to break above the cloud the previous days but failed. We mentioned many times before the important cloud and Fibonacci resistance at $1,725-27. The rejection at the resistance was followed by a sharp decline. Price broke below the Kumo providing us with a new bearish signal. The tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator) provide resistance at $1,713-15. Gold price has made no real progress over the last two weeks with price trading between $1,690 and $1,730. Bulls need to push price above the Kumo in order for bulls to regain control of the trend. Until then, Gold remains vulnerable to more downside.
