Gold price as expected by our analysis posted yesterday made a pullback towards $1,280 without breaking its previous low and by retracing nearly 76.4% of the rise from $1,275 to $1,295. Gold price has back tested the broken downward sloping channel and is now trying to move back above the Ichimoku cloud to regain bullish momentum. Currently, at $1,289, Gold price should break above short-term resistance at $1,295 in order to continue its upward reversal that started at $1,275.
It is important for Gold price to hold above $1,283 and continue above $1,295 for our short-term bullish view to get confirmed towards our target of $1,350. The short-term view is bullish as we expect the decline from $1,391 to be retraced partially and to provide a good sell opportunity for our longer-term target of $1,100.
Our longer-term view is depicted in the chart above. I expect a pull back towards $1,330-50 and then another move down to test $1,1180. Current view is short-term bullish with $1,275 stop and target to take profits near $1,330-50.
