Gold price back tested the cloud support as we expected and bounced back towards its recent highs and important medium-term resistance. The bulls need to break above $1,263 and hold $1,240. I remain bullish looking for a breakout towards $1,280-$1,300 first.
Gold is trading above the 4-hour Ichimoku cloud. Trend is bullish. The price bounced off the lower cloud boundary and now we wait for the breakout. Gold should now break resistance at $1,263. The more it delays it, the chances for a deeper pullback increase. Critical short-term support is at $1,240.
Yesterday's daily candle is very impressive as buyers stepped in and erased the losses and pushed Gold price back to its highs. However, we still have no breakout. I remain optimistic looking for a breakout soon.
