Gold price has bounced from $1,146 low towards the previous high of $1,178. Gold price has managed to reach the 78.6% Fibonacci retracement but did not manage to make a higher high. This upward move could continue higher towards $1,195 if yesterday’s high at $1,174 is broken. Otherwise, we might have started a new downward move and the upward bounce is finished.
Gold price in the short-term chart as shown above has reached the 78.6% retracement and got rejected. As long as price is above the short-term support of $1,159, bulls will be in control with increased chances of moving towards $1,195 if resistance at $1,170-74 is broken. My longer-term view remains bearish with $1,050 as a target. I prefer to open short positions as price breaks below certain support levels.
In the 4-hour chart, we see Gold price has entered the Ichimoku cloud neutral level. Support is found at $1,159-$1,155 and at the low at $1,146. Breaking below these support levels will confirm that a new downward move has started. I remain bearish and looking for opportunities to sell.
The material has been provided by InstaForex Company – www.instaforex.com