Gold price remains trapped inside the short-term trading range between $1,342 and $1,330. This consolidation will soon end and price will break out of this range. My preferred scenario sees a bullish break out and new highs.
Green line - support
Price continues to trade sideways but also above the 4 hour Ichimoku cloud. Price is expected to break higher and test the longer-term trading range upper boundary around $1,350-60. Only a break above that area will open the way for a new high and big upside move towards $1,500.
Black line - medium-term support
Green line -long-term trend line resistance
The weekly chart continues to trade sideways in what could be a bullish flag formation. However, soon we should see the upward breakout. Huge long-term resistance is at $1,370-80 while medium-term resistance is at $1,350-60. If Gold bulls manage to break clear of these two important resistance levels, Gold price will explode higher towards $1,500. Failure to do so will put $1,300 to the test and most probably will break it and move towards $1,200.
