Gold remains weak as the price has broken below the short-term trend-line support and is moving lower in an impulsive way. Gold medium- and long-term trends remain bearish and I believe it is only a matter of time before we see a break of the support at $1,130.
Blue line - trend line support
Gold is trading right at the edge of the boundaries of the Ichimoku cloud support. The rejection at the 61.8% retracement was an important sell signal. Short-term support is at $1,170. Short-term resistance is at $1,208.
Blue line - long-term support trend line
The weekly chart has made a bearish reversal after last week's strong bounce. The price is below the tenkan-sen again as bulls could not move it even towards the Ichimoku cloud boundaries. The trend remains bearish. Critical support is seen at $1,130. I expect this level to be broken over this summer and Gold is likely to be pushed towards $1,000.
The material has been provided by InstaForex Company - www.instaforex.com