Gold price was pushed lower yesterday after the Leading Indicators numbers release and reached the support level of $1,185 by the upward sloping trendline. My longer-term view remains bearish as I believe that the area of $1,130-40 will be tested again once we break out of the trading range of $1,220-$1,175.
As can be seen in the 4-hour chart above, the trendline that connects important lows was reached yesterday and support was held. However, the price is below the Ichimoku cloud, which means that the short-term trend remains bearish. Today, we could see a bounce towards $1,200, which is the 1st short-term resistance level. A breakout below $1,180 will not be a good sign.
