Gold has continued lower towards 1,265 without making any try for an upward bounce. Trend remains downwards and the bears still have the upper hand. Prices have now reached the important neckline area. Prices have made a low in the upper boundaries of that support area.
The daily chart above shows the important support area prices are found right now. We could see an upward bounce towards the downward sloping red trend line at 1,340-50. If this line is broken upwards we should anticipate prices to test 1,400-1,430.
The short-term trend could change if the prices manage to break above 1,283 and could push prices towards 1,300 where the next short-term resistance is. Important resistance is the 1,318 level and after that the 1,340 area. We will turn bullish if prices break above the blue trend line as shown above.
