Gold is pulling back after reaching our target area of $1,130-40 last week. A break below $1,200 will open the way for a deeper decline towards $1,150. However, if support holds and price breaks above $1,235, we should not be surprised to see Gold price rally towards $1,300.
Gold price is near the top of the Kumo and still holding above the kijun-sen support. Short-term support is found at $1,209-$1,200. Breaking below this area will push prices towards the 61.8% Fibonacci retracement. Resistance is at $1,135. Breaking above it will open the way for a re-test of the highs.
In the weekly chart above we see another red weekly candle at the start of the week. Will support hold like last week? If yes the bounce will be strong and can push prices to new highs. If not, then we should expect Gold price to push towards $1,150.
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