Gold prices remain near their recent highs at 1,327. The upward move from 1,250 looks impulsive, and we may need one more new high to complete the 5 waves up from the lows. Short-term support is found at 1,318 and short-term resistance is found at 1,333. If prices reach the resistance, then this could be the end of the move. If prices break below 1,318 then the 5 waves are completed, and we should see a pull back towards 1,300-1,290 for a back test of the broken trendline.
Gold has very important long-term support at 1,250-70 and long-term resistance at 1,375-1,433. As long as gold is trading above that important support, there are increased chances that the resistance at 1,433 will be challenged and if broken, then prices could reach even 1,500-1,600.
On the other hand, if prices break below the 1,270-50 support, then we should expect new lows below 1,180 to be seen. Our target, if prices break below 1,250, is the 1,080 price level, which also is the 50% retracement of the multi year rally in Gold prices. Concluding we prefer to stay long in the short term, as long as prices trade above 1,318 and with 1,330 as a target. Our bigger picture expects prices to make a move towards 1,300.
