Gold price has held support at $1,207 on Friday and made a higher low at $1,212. Short-term trend is sideways and I prefer to stay neutral for now. My longer-term view remains bearish. My target remains at $1,000. We first need to break below $1,180. This will strengthen our bearish scenario.
Blue line = support
Green line = price channel
Gold price as shown above in the 4 hour chart remains in a bearish trend. Price is below the Ichimoku cloud and still inside the downward sloping green channel. However, price remains above the short-term support at $1,208. Breaking below that support will probably push Gold price towards $1,180. Breaking above $1,233 resistance could push Gold price towards $1,250-60.
Red line= resistance
Blue line = support
In the 30-minute chart, we see the higher low made on Friday and this could signal a move towards $1,225-30 where resistance is found. Gold price is forming a sideways triangle as long as it trades between $1,233 and $1,212. The triangle is getting narrower and we should soon expect a break out. I prefer to stay neutral and wait for the break out before opening a position. A longer-term trend remains bearish, so we should also keep in mind that opening a long position is against the larger trend.
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