Gold price has made a small spike upwards towards the $1,291 resistance by the downward sloping channel. Price got rejected at that level and pulled back towards $1,280. Strong support is at $1,270. We expect an upward trend reversal from the current levels.
Short-term resistance is at $1,291. Short-term support is at $1,270. Price is still in a down trend as it remains below the Ichimoku cloud. Breaking above $1,294 will change a short-term trend to bullish. Bouncing off the $1,270 support is a good sign for bulls. Bulls do not want Gold price back below $1,270. If this happens, then a sell off towards $1,200 is very possible.
The daily chart reacted bullishly from $1,270. The red trend line is important support. Bulls need to see Gold price re-enter the Ichimoku cloud and break above it in order to push to $1,350 which is our target. Breaking below $1,270 will not be in our favor. This could bring Gold price to $1,200.
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