Gold price action was very quiet yesterday mainly because of the holiday in the US and the closed markets. Gold price could have very well started its next leg up towards $1,400 but this scenario will be more valid on a break above $1,350.
Black line - resistance trend line
Gold price is inside the 4-hour cloud resistance area. Gold price has short-term resistance at $1,330-40. A break above it will open the way for a re-test of the highs. Support is at $1,315. A break below it will open the way for a push towards $1,280 and lower.
The weekly candles in Gold show me that there are now increased chances of a multi-week bounce towards our previous highs. Last week's candle is a bullish hammer and if we see a strong follow through then the highs will be challenged. Weekly support is at $1,280 and has not been reached. A new low in Gold will not cancel the bullish scenario but with everyone expecting $1,280 it is no surprise that Gold did not eventually reach that level.
