Gold price has held support and is showing signs of an upward reversal for the short-term trend. Important resistance is found at $1,130-50 area and a breakout above these levels will push the price towards $1,200. Bullish positions are favored for now as I see more chances of an upward bounce.
Gold price is above the 61.8% retracement and has already made a short-term higher high and low. The price is testing the short-term cloud resistance at the $1,130-50 area. The medium-term trend favors bulls and a push towards $1,200.
However, the weekly chart has much work to do in order for bulls to feel more comfortable. The weekly candle needs to close at least above the tenkan-sen in order for bulls to have some positive signs. Buyers need to support Gold price at these levels and push prices higher. With equity markets being very volatile, another sell-off in equities could help Gold price push higher towards the Ichimoku cloud resistance at $1,200.The material has been provided by InstaForex Company – www.instaforex.com