Gold price has made a short-term low at $1,160 and now is trading $10 higher. The short-term consolidation could produce an upward bounce towards $1,190 where the 38% retracement is found. The trend remains bearish. So, we expect Gold price to eventually reach $1,050.
As long as price is above $1,160 we should expect a bounce towards $1,190 at least. Price is below the Ichimoku cloud and all indicators remain bearish. The extended decline in Gold on Friday is expected to be followed by a short-term relief bounce and then another move lower towards $1,100. The trend will change if price breaks above $1.240.
Black line= support
Blue line = resistance
The weekly chart remains fully bearish specially now that we have broken below the triple bottom at $1,180. A back test of the break out area is very possible but my longer-term view remains fully bearish towards $1,050. Any bounce should be seen as an opportunity to sell. Weekly resistance is at $1,213 and a weekly close above it could signal a bigger bounce towards $1,260. As long as Gold price is below the cloud and below the blue trend line resistance I remain bearish with targets below $1,100.
