Gold price got rejected near its recent highs above $1,305 and is turning lower. With the dollar strengthening from last Friday, gold is expected to break recent low and move lower towards $1,270. My longer-term view remains bullish.
Gold price has already broken the kijun-sen (yellow line indicator) on the 4 hour chart with a gap down. The move towards $1,270 has started. I expect to see this decline stop around the Ichimoku cloud levels of $1,270.
Weekly resistance at $1,310 provided a rejection and price is now pulling back towards the weekly Tenkan- and Kijun-Sen (red and yellow line indicators). A weekly close below $1,270 will be a bearish sign and could imply that the entire correction may be not over yet and we may see a deeper pull back towards $1,200. If the price breaks above the blue resistance line, we should expect $1,350 to be challenged.
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