Gold price has pushed upwards yesterday towards the channel boundaries and got rejected. Gold price remains below the important resistance of $1,233 and it may have finished the sideways correction. I continue to expect Gold price to test the important support at $1,180 and finally break below it.
Blue line = support
Green lines = price channel
Gold price remains below the Ichimoku cloud and inside the downward sloping channel. Gold price has reached the upper channel boundaries and got rejected. Gold price is now expected to move lower to test the lows at $1,204. We could see a minor new high but the chances for this are slim.
In the 1 hour chart above, I show the sideways pattern Gold is following. The $1,225 is the maximum level I expect Gold price to rise. Important resistance is found above $1,225 and at $1,233. Breaking above that level will confirm short-term trend change to bullish. I believe that this sideways move will soon give us a break out. I favor the downward break towards $1,180. My longer-term view remains bearish. Confirmation will come once we break $1,180 with $1,000 as target.
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