Gold price got rejected yesterday at $1,353 and is now in a short-term bearish trend making lower lows and lower highs towards the first important short-term support of $1,333. As long as Gold is above $1,300, our bullish scenario is the leading one. If we break below it, the road for a move towards $1,200 is open.
Short-term support is found at the Ichimoku cloud at $1,322 where we also find the 61.8% Fibonacci retracement of the latest rise from $1,302 to $1,353. Support is also at the $1,333 level where we find the 38% Fibonacci retracement.
The daily chart remains above the black trend line and still above the cloud. With red labels I show the bearish scenario that could bring Gold back to $1,180 where the 61.8% Fibonacci retracement is found. In the shorter-term, if Gold manages to break above $1,340 we could see another test of $1,350. A new rejection will increase the chances of a move towards $1,320 or lower.
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