Gold price has broken above short-term resistance after backtesting the broken bearish price channel and is now heading towards $1,235-40. Short-term trend is bullish although the longer-term trend remains bearish. This counter-trend move is most probably another opportunity to sell before breaking below $1,180.
The short-term trend in gold price is bullish. Gold price is above the Ichimoku cloud as shown in the 30 minute chart above. The ichimoku cloud indicators are fully bullish and as long as price is above the support level at $1,204, we should expect this upward move to continue.
Gold price has broken above the downward sloping channel as shown in the 4 hour chart above. Price initially got rejected at the Ichimoku cloud and back tested the break out area of the bearish channel. Once support at $1,202 was held, Gold price spiked higher breaking above the Ichimoku cloud for the first time since August 15th. The 38% retracement is found at $1,235 and this is a possible target for a top in Gold. Breaking above this level will probably push gold price to the next most probable target of $1,265-70. For the time being, short-term trend is bullish. This changes if price falls below $1,204.
