Gold price has reached the short-term resistance levels by the Ichimoku cloud and this is the first important test for bulls. A breakout above the cloud and specially above the $1,350 resistance will open the way for a push to new highs. A rejection here will open the way for a deep decline towards $1,200-$1,250.
Gold price is below the 4-hour Kumo (cloud). Price already once reached the Kumo and got rejected. Now the price is back up there testing short-term resistance at $1,330. A breakout above the cloud will be a bullish sign. Support is at $1,315.
Blue lines -bullish channel
Price remains inside the long-term bullish channel and above weekly kijun-sen indicator (yellow line). The long-tailed bullish candle of last week could very well be a bullish reversal hammer that will bring Gold to new highs. Bulls need to show some follow through and break $1,350 resistance to increase the chances of this candlestick pattern to get validated.
The material has been provided by InstaForex Company - www.instaforex.com