Gold price as expected could not break above the important resistance of $1,195-$1,200 area and was rejected. The rejection by the trend line resistance has pushed Gold price towards the recent lows and support at $1,180.
Red line = resistance
Green line = support
Gold price as can be seen on the 4-hour chart above was rejected at the resistance we mentioned on Monday. Price remains below the red trend line and below the Ichimoku cloud. As long as price is below $1,195, I feel confident we will break below support at $1,170 and we will test the recent lows at $1,130.
Blue line = support
Gold price is on a bearish trend for some time now. The weekly chart above shows that price is below the kijun-sen support. Although it is still early in the week, we should not ignore the fact that Gold price continues to make lower lows and lower highs. Closing this week below $1,185 will be a bearish signal with potential downward move to $1,130 or even new lows.
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