Gold price is now near the critical support of $1,238-33. Short-term trend is down as the price pattern from recent highs at $1,279 is making lower lows and lower highs. This reversal from $1,270 area was expected since the longer-term resistance at $1,270-80 had been very strong. We expect Gold price to continue this downward trend lower and a good bearish signal that will support our view if the price moves below the $1,238-33 support.
We continue to believe that the upward move from $1,180 is corrective as we cannot find a clear impulsive wave up in order to justify more upside movement. The daily chart continues to show Gold price below the important downward sloping trend line resistance.
For bulls, it is important Gold price to trade above $1,238 and try and break above the short-term resistance at $1,255. For bears as we mentioned above it is vital for Gold price to remain below $1,270 and try to break the $1,238 support level. Our longer-term view is bearish and our short-term view is mildly bearish. We will become strongly bearish for the short-term if $1,220 support fails. Target will then be $1,140.
