In our previous Ichimoku cloud analysis on Gold we warned traders that price was vulnerable to a move lower specially if price were to break below the kijun-sen (yellow line indicator). Last week ended with Gold below the kijun-sen providing a new bearish signal. This week starts with Gold under pressure following that bearish signal. Since breaking below the kijun-sen our target is the Kumo (cloud). The tenkan-sen (red line indicator) has crossed below the kijun-sen and both are now resistance at $1,694 and $1,701 respectively. The most important bearish signal will come with a price break below the cloud. Gold is now approaching very important support. A bounce off the cloud support is justified. Failure to do so will be a sign of weakness.
