Gold price is breaking below support levels and downtrend resumes after the strong bounce from $1,180 to $1,255. My longer-term view remains bearish targeting $1,050. The short-term trend has changed to bearish as well.
As one can see in the 4-hour chart above, Gold price has broken out and below the Ichimoku cloud support and this confirms that the short-term trend has changed to bearish. In order for the short-term trend to change to bullish again, Gold price needs to break above $1,237 which is the cloud resistance and the Kijun-sen. As the cloud is turning red, this confirms the bearish trend we are currently in. A bounce towards $1,235-57 will not be a surprise for bears, but a break above this level is likely to happen. In any case, a rejection and a daily close below $1,237 continues to put the trend on bears' hands.
Blue line=support
Gold price in the weekly chart above remains fully bearish in Ichimoku cloud terms. Price is below the tenkan-sen and has not managed to close above it for the last 10 weeks. The tenkan-sen weekly resistance is now at $1,235. So, a weekly close above this level could push Gold price towards $1,265. In generall, trend remains down and breaking below support at $1,180 where a triple bottom is formed, will surely push prices much lower towards $1,050. Concluding I remain longer-term bearish in Gold.
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