Gold price remains in a short-term bearish trend after the bearish reversal from $1,220. Gold price has broken short-term support and is heading towards $1,180-75, which might be the last chance for a bounce towards $1,250. If important weekly support at $1,130 gets broken, we should expect the price to move towards $1,000 or even $900.
Red line = support
Gold price is above the Ichimoku cloud but has broken below the upward sloping red trend line support. The price is heading towards the Ichimoku cloud support at $1,180-75. If Gold price breaks below the Ichimoku cloud, we should expect $1,130 to be tested.
Blue line = support
Gold price remains in a bearish long-term trend in the weekly chart as shown above. The price was rejected by kijun-sen resistance and we also have a bearish sell signal be the cross of the kijun-sen and then tenkan-sen. The price is below the cloud and I believe we should expect a move towards the support line at $1,130 as long as we trade below $1,215. New lows over the coming weeks towards $1,000 will be expected once $1,130 is broken.
The material has been provided by InstaForex Company – www.instaforex.com