Gold price has stopped its decline at the 50% retracement and at the top of the Ichimoku cloud as it was expected. This is a positive sign for bulls as this keeps their chances of seeing a move towards $1,250 alive. My longer-term view remains bearish.
The short-term resistance is at $1,217. Support is at $1,200. The decline that started from $1,230 has paused. There are increased chances of an upward reversal. If prices turn higher from this level, we should expect an upward thrust towards $1,250 if the level of $1,230 is broken.
The weekly chart remains bearish as the price got rejected at the cloud resistance. The form of the upward move is corrective so far and as long as the price is below the weekly Ichimoku cloud I remain bearish. Important weekly support is at $1,170 and at $1,130.
