The gold price has made an upward breakout. The short-term target is at $1,095. If it is surpassed, then we should expect a move towards $1,101 where the 38% Fibonacci retracement of the decline from $1,190 is found.
The gold price has turned the short-term trend into bullish as we have a clear break above the Ichimoku cloud. As long as the price is above the cloud we could see a even bounce towards the 61.8% Fibonacci retracement. The minimum upside target is at $1,095. Support is at $1,070.
The price is below the Ichimoku cloud on the weekly chart. The long-term trend remains bearish. But the fact that the stochastic is oversold and we are at the lower boundary of the wedge justifies a strong bounce towards the Ichimoku cloud if not the kijun-sen (yellow indicator). As I have been saying for the last month, as long the gold price trades around $1,070, this is not the market to go short.
