Gold price as expected by our analysis after being rejected at $1,270 has broken the short-term support at $1,248-50. Gold price has also broken the short-term upward sloping trend line and is moving downwards in an impulsive pattern. As mentioned in previous analysis, we believed that the rise from $1,180 is corrective and a reversal was expected around $1,270. Now Gold price reverses lower towards the important support area of $1,230-$1,220. The daily chart shows the Gold price that has moved again below the long-term trend line resistance that connects $1,433 and $1,360. We continue to believe that an important top could be formed around $1,270 and we could see a downward move towards $1,140. However we should first get some sell signals before the above scenario gets confirmed. Sell signals will be given if Gold price makes a daily close below $1,220-30 support and if the decline continues to unfold in impulsive waves. Currently, we have 5 waves down from $1,279 to $1,251, an a-b-c correction that reached $1,270 and now another impulsive move that has already reached $1,238. These are three waves down. We need a fourth and a fifth wave down to be more confident regarding the bearish scenario.
