Gold price remains very weak making lower lows and lower highs just above the $1,300 support area. The fact that Gold has not reversed yet to the upside decreases the chances of that happening and increases the chances of a move towards $1,280 before any upside bounce.
Blue line - support
Red line -resistance
Gold price has broken through the short-term support trend line as it continues to be in a short-term down trend. Short-term support is now at $1,300 and resistance at $1,325. Only a break above $1,325 will change short-term trend and only a break above the red trend line resistance could signal a longer-term breakout.
Black line - medium-term trend support trend line
Red lines - trading range
Gold price is below the Daily Ichimoku cloud and this is not a good sign for bulls. Although price remains inside the downward sloping trading range, price has broken the upward sloping trend line support from $1,045. Next important daily support is at $1,200-$1,250 area if we fail to hold above $1,300.
The material has been provided by InstaForex Company - www.instaforex.com