Gold price remains inside the trading range of $1,220 and $1,190 forming a sideways contracting triangle. The trend is neutral. Traders should better be patient and wait for a break out. Possible targets are $1,270 or $1,130 depending on the direction of the break.
Red lines = sideways wedge
In the short-term chart we observe the neutral trend the gold price is currently in. Price has entered the Ichimoku cloud which has become very thin. This is a sign that we will soon see a breakout. If it breaks above $1,218-$1,220 then I expect gold to rally towards at least $1,240. If this level is broken, then gold is likely to reach $1,270. If on the other hand gold price breaks below $1,185, then we should expect a test of the lows at $1,130.
Blue lines = contracting triangle
In the daily chart as shown above, we observe the medium-term trend being neutral as gold price is moving sideways inside a triangle. This consolidation does not help traders as there are many overlapping moves that confuse short-term traders. Best strategy is to wait for a breakout, or buy near support of $1,180, or sell near resistance of $1,235.
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