The gold price made a breakout above the short-term triangle pattern yesterday, but buyers were not strong enough to push the price towards $1,100. There is a high probability that gold is in a corrective phase since there is no clear upward impulsive moves seen. This implies that a new low towards $1,000 should come once this correction ends.
Red line - support
The gold price is trading above the Ichimoku cloud on the 4-hour chart and above the triangle pattern. We should expect the price to move higher towards $1,100 in the short term. Support is at $1,050. If it is broken, we should expect the level of $1,000 or lower one to be seen.
Yellow line - long-term resistance
Blue lines - long-term Fibonacci ratios
The weekly chart remains unchanged. The price is mainly moving sideways trapped between $1,100 and $1,050. Stochastic is oversold. The price should move higher first and then resume the downtrend.
