Gold price has given a short-term buy signal yesterday after breaking above $1,230 resistance. Gold price has spiked just above $1,234 and pulled back towards $1,220-25 support area. The short-term trend has changed to bullish and we could see a stronger bounce towards $1,250 as long as we trade above $1,215.
Blue line = support
Green line = price channel
Gold price remains in a longer-term a down trend. Price is still below the Ichimoku cloud and inside the downward sloping channel. Price has made a strong bounce from $1,208 to $1,234 and there is still a chance we could see this bounce move higher towards $1,250.
Blue line = Long-term support
Gold price in the daily chart as shown above is trying to bounce towards the 38% retracement of the decline from $1,295. It is highly probable to see a push towards $1,250 but traders should keep in mind that the trend remains bearish and betting against the trend is always riskier than following the trend. I prefer to stay neutral for now and wait to see if Gold price reaches $1,250 or if it breaks below the key support at $1,215-10.
