Gold price has held above the support level and reversed higher again today as we expected. Now it is testing important highs. The resistance between $1,257-$1,265 is critical for the short-term trend. Breaking it will open the way for a rise towards $1,280 at least.
The price is trading above the 4 hour Kumo. The trend is bullish. Gold back-tested the cloud support and shows reversal signs, indicating that the price is ready to break above $1,265 and test the major weekly resistance at $1,280-$1,300. Support at $1,245 remains the key one. If it is broken, we will test $1,220.
On the daily chart we still have no breakout. The price is trying to breach above the daily cloud and if it succeds, this will be a bullish sign. Holding the lower cloud boundary intact is a sign of strength. The correction looks like it wants to be a sideways one rather than a deep one. The levels of $1,280-$1,300 are seen as the next targets.
