Gold price has held support at $1,240 and has given a short-term buy signal when it broke the short-term triangle above $1,250. Now it is trading at $1,255, Gold price looks like it is going to continue higher towards our first target of $1,264. Gold price has made a move up to the 38% Fibonacci retracement. I expect at least a move towards the 50% retracement.
Gold price is heading towards the Ichimoku cloud resistance and I expect it to find it difficult to break above the $1,280 level. However we remain long in the sort term and we have $1,240 as the stop. This upward move is most probably a bounce before we resume downtrend towards $1,180.
As we mentioned in previous posts, we expected a bounce from current levels or from $1,230 where the 76.4% Fibonacci retracement is. The current upward bounce has the potential to unfold into something bigger even towards $1,330. But it is too early yet to talk about this scenario. First Gold price will need to move at least towards $1,280 if we want to have chances of moving towards $1,330.
