The gold price remains inside the bearish short-term channel. Bulls still have some chances of seeing a new higher high towards $1,200, while the price remains above the $1,165 level. The gold price has reached the area where the risk reward from long positions is not good enough as we now expect the gold price to come back towards $1,120.
Red lines – bearish channel
The gold price is testing the upper channel boundary. The price has reached the lower cloud boundary of the 4-hour Ichimoku cloud and bounced. The 38% Fibonacci retracement was not broken. There are still chances of a new higher high to get the price closer to $1,200.
The weekly candle remains bullish above the kijun-sen (yellow line indicator). The gold price could make a final spike towards $1,200 before the correction towards $1,120 that
The material has been provided by InstaForex Company – www.instaforex.com