Gold price is in a short-term up trend as price is making higher highs and higher lows. Gold price has almost reached the 61.8% retracement of the decline from $1,255 to $1,130. Strong resistance is at that level and it is also a possible reversal level. This bounce from $1,130 is a counter trend and I continue to believe we could see $1,050.
Black line = support
Gold price remains above the Ichimoku cloud and this shows that strong support is found at $1,145-$1,155. The upward move from $1,130 is at its final stages and I continue to believe it is a counter trend move. I expect a trend reversal soon. The first sign of such a reversal will come once prices break below $1,190.
Blue lines = support
Gold price has broken the short-term sideways consolidation in the $1,190 area to the upside and is trying to make a run towards $1,205-$1,210 which is the next resistance level. Breaking below $1,190 will push Gold price towards the important support of $1,185-$1,180. Breaking the blue support lines will signal more weakness and the start of a short-term trend reversal to the downside.
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