Gold price is weak starting this week with support very close to $1,280. Breaking below that level could signal the start of a deeper correction towards $1,260 or lower. Gold short-term trend is bearish while medium term trend is bullish targeting $1,330.
Red lines = support
Two red lines on the chart above show the support at $1,280-75. The current price action is below the short-term Ichimoku cloud and is challenging the short-term support. I believe, that once support is broken, we should expect a pullback towards $1,260 or even $1,230.
At $1,265 we find the tenkan-sen support, while at $1,238 is the Kijun-sen support on a daily basis. The price is above the Ichimoku cloud. Medium-term trend is bullish as long as the price is above the cloud support. Possible upside target is at $1,330.
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