For the last couple of sessions, I have expressed the bullish outlook for Gold expecting at least a bounce towards $1,280-$1,300. However, we should not ignore the possibility that the entire decline is over. Gold is trying to breakout above the short-term trading range.
Gold price has entered the short-term Ichimoku cloud. This implies that a short-term trend has changed to neutral from bearish. The two fake break downs we noted yesterday support my belief that Gold is about to start an upward move. For the time being, our short-term target is the upper cloud boundary at $1,285.
On a weekly basis price has stopped the decline at the 38% Fibonacci retracement and a bounce is justified from the current levels. Important long-term resistance remains at $1,340-50 from the downward sloping trend line. Weekly support is at $1,220.
