Gold price has made a strong reversal yesterday towards the support of $1,200. The short-term trend is unclear for gold, but there is an increased chance of a continued bounce towards the 38% retracement of $1,235.
Gold price, as shown on the 4-hour chart above, is inside the Ichimoku cloud and above the green support area of $1,188-$1,200. As long as gold price is above the green support area, I would expect gold price to bounce towards the 38% Fibonacci retracement at least.
Red line = support
Gold price on the weekly chart, as shown above, remains in a bearish trend and below the kijun-sen resistance (yellow line). However, as long as the price is above the red line support, I would expect gold price to bounce above the kijun-sen (yellow line) towards the tenkan-sen (red line) at least.
