Gold price remains inside the trading range we mentioned last week but is forming a bearish Head and shoulders pattern. The neckline at $1,180 is important support while resistance continues to hold at $1,220.
Red line = resistance
Green line = support
Blue horizontal line = Head and Shoulders neckline
Gold price is below the Ichimoku cloud in the 4-hour chart and this is a sign of weakness. Gold bulls will have to defend the $1,180-85 support soon. Resistance is found at $1,210-20. If support is broken, the neckline target is at least $1,130. If resistance is broken, I would expect Gold price to reach $1,250-70.
The weekly chart also remains inside the trading range. Price is below the Ichimoku cloud and below the kijun-sen. Losing the tenkan-sen at $1,193 will be a bearish signal for Gold price. If week closes above the kijun-sen at $1,240, then we should expect an upward push towards $1,286. My longer-term view remains bearish.
