Gold prices are trading near 1,280 after continuing the lower lows and lower highs pattern. Resistance level at 1,325 was not broken and as we noted in our previous analysis, as long as the prices were trading below that level, then it would be more possible to see 1,290 and lower.
Important levels for bears and bulls to watch out for are 1,315-18 and 1,250-60. The chart above shows those two levels we mentioned. If the neckline support at 1,250-60 is broken, then the longer term bearish scenario will have prevailed and we will have 1,140$-1,080, as a possible target. On the other hand, if the prices manage to break above the green trend line at 1,315-18 short-term resistance, then 1,360 will be challenged.
Gold prices are nearing important daily support at 1,270. The prices have retraced nearly 76.4% of the entire rise from 1,250 to 1,360 and the prices should bounce upwards soon if the bulls want to have any chance of success. Breaking the blue support line in the daily chart above will bring more pressures for Gold prices that will challenge the 1,250, low where the Head and Shoulders neckline is. The bulls will need a reversal to take place soon if they want to avoid a new low below 1,180.
