Gold price remains in a bearish trend from $1,250 and is also giving longer-term bearish signals and that more weakness should be expected. The weekly chart according to the Ichimoku cloud indicators has given a second sign of weakness with price closing below the kijun-sen.
Red line = resistance
Blue line = support
Green lines = downward sloping channel
Gold price is below the Ichimoku cloud and inside the downward sloping channel in the short-term as shown by the 4-hour chart above. The trend is clearly bearish even after the bounce towards $1,222 which was short-lived. Support is at $1,197 and if broken I would expect $1,190-85 to be tested. A bigger bounce will find resistance at $1,222 and next at $1,230.
Four weeks ago, the weekly chart gave us the first warning signal of weakness in the Gold price. The Ichimoku cloud resistance was too strong and price got rejected at $1,300. Now, Gold price has broken below the kijun-sen (yellow line) and this is a 2nd sign of weakness which means that there are increasing chances that we see a test of 2014 lows. Only a break above $1,300 will change the medium to long-term trend.
