Gold bulls should be very cautious as price stalls near the $1,340 resistance. The trend remains bullish but bulls should raise their stops to $1,330. Short-term support is at $1,330 and short-term resistance at $1,340.
Gold price remains above the upward sloping trend line and support and above the Ichimoku cloud support. The RSI is diverging despite the new high we do not see this indicator make a new high too. So bulls should protect their positions by raising stops. Breaking short-term support at $1,330 could push prices towards $1,300. Below that level we can see $1,280 support. On the upside, if we break above $1,340, we could see $1,350-60.
Gold price has reached the 61,8% Fibonacci retracement and that is why it is stalling near $1,340. This is important resistance. A clear break out above this resistance could push Gold price towards $1,370 if the break out is confirmed on a daily level. Concluding, we remain bullish but we raise stops and we are on alert of a possible reversal since we have reached the 61,8% retracement from $1,433 to $1,180.
