Gold price has continued higher towards our $1,300 target and has even reached $1,310 getting closer to our second target of $1,320. Gold is now getting some overbought signals and has reached intermediate-term resistance. Chances have increased now for a potential pullback. The trend remains up and we still have no sell signal in any time frame.
As shown in the chart above, Gold price continues to make higher highs and higher lows. Gold price continues to trade above the Ichimoku cloud support. Important short-term support is now found at $1,285 and short-term resistance is at $1,320. Breaking below $1,295 will be a first weakness sign. Important long- and intermediate-term support is at $1,250.
The daily chart shows clearly how close Gold price has reached our target and is getting closer to the long-term downward sloping trend line. After the battle around the $1,250-60 price level, we mentioned that bulls were winning and we should expect to see Gold price above $1,300. Now we should be very cautious and raise stops and take some profits to reduce exposure in Gold as a pullback is very possible.
