Gold price shows early signs of a bullish reversal. Gold price should break above $1,318.50 in order to continue towards $1,324 or $1,331. The medium-term trend remains neutral inside the trading range.
In the short-term, price is trying to make higher highs and higher lows. In the 30-minute chart, we see price testing short-term resistance at $1,318.50. Breaking above it will push prices towards the 100% or the 161.8% extension. Support is at $1,311.50.
Red lines - trading range
Gold price is trapped inside a trading range and now is trading close the lower boundary. The risk reward favors long positions as the profit potential is huge relative to the risk taken. The risk is if price breaks below $1,300. I can see Gold price reach at least the upper cloud boundary at $1,340 and why not even the $1,355. A breakout above this range will push prices to new highs above $1,400.
The material has been provided by InstaForex Company - www.instaforex.com