Yesterday, gold price move lower towards a previous lows of $1,046 as the US dollar substantially strengthened against other major currencies. Gold price did not reach a new low, but even if it does I believe the downside potential would be limited.
Blue line - resistance at $1,080
Gold price is below the Ichimoku cloud and below the blue trend line. A short-term trend is bearish. However, the price formed a double bottom and bounces off the early December's lows. This low is going to break over the coming sessions, but I do not see much downside potential.
Nothing new is observed in the weekly chart. A long-term trend remains bearish. However, the price is trading alongside the downward sloping lower wedge boundary with an oversold stochastic oscillator. Prices should bounce strongly next towards at least $1,120-30. The downward move since $1,190 is nearly completed.
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