Gold price has reached the important support of $1,270 as expected, after breaking below $1,280 low. The trend remains bearish. Price is making lower lows and lower highs. However we see initial signs of a potential bullish reversal from current levels.
Short-term resistance is found at $1,290 and at $1,300. Price is below the Ichimoku cloud and inside a downward sloping channel. Support at $1,270 is very important as this is where the trendline from $1,180 and $1,240 comes through.
The decline from $1,346 is still in three waves and does not look impulsive. This is why I believe this is a part of a corrective wave and we should soon expect an upward reversal in Gold price. The bounce from $1,271 may be short lived but it is too early to tell yet. An initial buy signal will come once we break above $1,290 and $1,300. The target remains $1,350.
