The gold price has broken short-term support yesterday and is pulling back towards important short-term support at $1,320. The price is expected to reverse upwards from current levels. The rejection below $1,350 is not a good sign, but the price remains above the critical support of $1,300 and inside the long-term sideways channel.
The gold price has reached the 61.8% Fibonacci retracement of the latest rise and the 4 hour Ichimoku cloud. This is a short-term support area. I expect a bounce from this area and a confirmed higher low. Next support is at $1,310-$1,300. Resistance is at $1,335.
Black line - medium-term support
Green line -long-term resistance
The weekly chart continues to show us that the price is still trapped inside the trading range and that trend is sideways as the both tenkan- and kijun-sen are flat. As long as the price holds above the black trend line support, I remain optimistic regarding a new high towards $1,450.
