Gold price bounced as expected yesterday, but the bounce was a shallow one. The price reached the broken short-term trend line support that was broken and back tested it. The price got rejected at the resistance previous support and is now back near the week lows. I expect the decline to stop around $1,310 and Gold to start a new upward move from that area.
Red lines - trading range
Black line - resistance previous support
Gold price is in a bearish short-term trend. Weekly support is at $1,304. I do not believe we are going to break that level, but we are going to at least challenge $1,310. There is no bullish divergence yet. So, bulls that want to buy Gold, should be patient. Resistance is at $1,332. I believe we should see new lows near $1,310 before starting a new upward move in Gold.
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