Yesterday we saw Gold price making new highs above $1,270, and then it turned back down as if the upward break was fake. The current sideways pattern with long tails in the candlesticks means that Gold is still in a neutral zone and bulls fight with bears to see who gains the upper hand. With the ECB decision yesterday providing a small downward pressure towards $1,253, Gold price bounced higher towards $1,264 today canceling the last decline.
Gold price continues to make higher highs and higher lows above the short-term Ichimoku cloud indicator. However the sideways triangle as shown in the chart above remains to be broken. Important resistance level is now $1,273 and important support level is $1,253. Breaking either level should provide a strong move towards $1,300 or $1,220.
The daily chart continue to favor a neutral position as there is no clear direction. The battle around $1,260 continues and we should be patient as Gold price doesn't move far from this level. We prefer short positions with $1,280 stop or new short positions if support at $1,250 fails. Short-term target is $1,230 and longer-term target is $1,180-40.
