Gold continues to move higher towards our corrective bounce target $1,260-70. We believe that Gold prices are in a corrective upward pattern that will complete near $1,270-$1,300. Prices have short-term support at $1,225 and then at $1,210. Short-term resistance is found at $1,245 and at $1,270.
Our exit short signal was given at $1,220 and now prices are trading near $1,240. There is more upside potential as prices have broken the downward sloping channel from $1,270 and are heading towards the important resistance of $1,255 where the 38% Fibonacci retracement of the decline from $1,360 is.
Long-term trend remains downward. Important resistance for the long-term trend is the purple downward sloping trend line shown in the chart above. Breaking and staying above that resistance trend line is important for bulls in order to regain the upward momentum. Our expectations are too see prices bounce towards that trendline and get rejected in the process. We still expect the $1,140 target to be achieved in January.
