Gold price reversed lower on Wednesday towards $1,153 support after breaking short-term support level of $1,159. Short-term trend has changed to bearish as long as price is below $1,171. Next support to watch is at $1,153 and $1,146. Longer-term target of $1,050 remains valid.
Gold price has made the minimum required upward correction after completing the decline from $1,255 to $1,130. The 38% retracement was reached. Gold price got rejetected at the Ichimoku cloud and this is a bearish sign. However, since price is still inside the cloud bulls are slightly protected. If price falls below the cloud at $1,146 then the bearish trend will get confirmation and Gold price will probably make a new low towards $1,110.
Red line= resistance
Blue line= support
Short-term resistance is at $1,170 and short-term support at $1,153 and $1,146. Breaking below the two support levels will push the Gold price towards at least $1,110. If resistance is broken, then there is a high probability we see another Gold price spike towards $1,190. My longer-term view remains bearish.
The material has been provided by InstaForex Company - www.instaforex.com
